US Stock Average Cost

[Alex Hee]

Wondering how US stock average ccost calculated in MS Money?

When I look at the summary, it appeared higher than what I seen in my broker app.

Example,

1. NVDA - 169.50
2. NVDA - 170.00

Broker App = 169.50+170.00 = 169.75

But in MS Money it shows higher, anything that I'm missing?

[Cal Learner]

Configuring in the Portfolio column, you see something higher than $169.75 for the AverageCost column.

When you expand the NVDA row by clicking the +, do you see only two equal-Quantity Buy transactions, plus some dividends? Or do you see something else?

[Alex Hee]

Only BUY transaction. Btw, additional info that my currency based is MYR, is it due to this?

Plus, I put the dividends into Cash transaction instead Investment transactions.

[J Hoban]

Average cost is a weighted average of your purchases and sales:    average_price = (#shares1 * Price1 + #shares2 * price2 + ... #shares_n * price_n)/total_shares

[Cal Learner]

Putting the dividends into the Investment transactions is better, because it lets Money take the dividends into account when computing Total Return.

If all of your currency is MYR, then the average price should make sense. On the other hand if you had mixed currencies, I am not sure how that would work.

So only two equal-sized BUYs I think you are implying. No SELL transaction. No ReinvestDividend.