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Stock Average Calculator

Formula

The formula to calculate the Average Stock Price is:

$\text{Average Price} = \frac{\sum (\text{Price} \times \text{Quantity})}{\sum \text{Quantity}}$

Where:

$\text{Average Price}$ is the average stock price.
$\text{Price}$ is each individual stock price.
$\text{Quantity}$ is the quantity corresponding to each stock price.

What is Average Stock Price?

The average stock price is calculated by multiplying each stock price by its corresponding quantity, summing these products, and then dividing by the total quantity. It provides a measure of the average cost of stocks purchased.

Example Calculation

Consider an example where the stock prices and quantities are:

Stock Prices: 100, 150, 200
Quantities: 10, 5, 2

Using the formula to calculate the Average Stock Price:

$\text{Average Price} = \frac{(100 \times 10) + (150 \times 5) + (200 \times 2)}{10 + 5 + 2} = \frac{1000 + 750 + 400}{17} \approx 128.82$

This means that the average stock price for this example is approximately 128.82.