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
- Costco Wholesale Corporation Is Offering Investors a Great Opportunity
- Mark Your Calendar: General Motors Company Earnings
- Nelson Peltz's $2.5 Billion Bet on GE: What Investors Need to Know
- Sprint's Cutting
- Disney?s Movies Are Not a Silver Bullet Against Cable Losses
- How Do YOU Want to Spend Your Money in Retirement?