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
- Intuitive Surgical Inc.'s Margins Go Under the Knife
- Should Samsung Embrace Emerging Markets With Low-End Galaxy Smartphones?
- Will Google's Nexus Android Gaming Console Flop?
- T-Mobile and Sprint Are Fighting Tooth and Nail for Lower Wireless Prices
- Why Angie's List Is a Bigger Threat to Yelp If Rumors Are True
- Interactive Brokers Takes a Hit, but Turbulent Markets Could Mean Better Days Ahead