Average cost is one of three methods to determine the cost basis of the mutual fund shares you sell. Under this method, you determine the average price of all of your shares, including those purchased with reinvested dividends and capital gains. That price becomes your cost basis.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- 3 Reasons Lorillard Inc. Is a Top Dividend Stock
- Ford Motor Company: What Investors Should Note During the Automaker's Busy Month
- 4 Things Long-Term Investors Should Never Say
- Delta (DAL) Stock: How Big is Its Fuel Advantage?
- 9 Critical Investing Lessons From a Nobel Prize-Winning Economist
- Netflix, Inc. Heads to the Land Down Under