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in this video were going to talk about how to calculate the average cost basis or the average cost per share when making multiple purchases of the same stock at different time periods so in this example robert buys 200 shares of stock xyz at 15 and 300 shares of the same stock when its trading at 10 dollars so what its a what is roberts average cost per share as a result of these two purchases so feel free to take a minute and pause the video if you want to try this problem but first lets begin with a formula so the average cost is going to equal the total cost divided by the total number of shares that he owns so first lets calculate the total cost robert purchased 200 shares of stock xyz at 15 dollars so if we multiply 200 by 15 that investment is worth 3 000 at that time now he also buys 300 shares at a price of ten dollars so which means that he also invested three thousand during his second purchase so his total cost in buying these shares is six thousand dollars now the tot
