Seems off...
$HUB Cyber Security(HUBC.US$ Question: You have a stock and continue adding shares at lower prices bringing your average down. If you were to later do a partial sell off of some of your shares, does the average price drop or stay the same?
Reason I ask is because I used to do this on Public, and my avg price paid went down... However, on this HUBC, I sold some shares and my avg price stayed at the same level. It seems basic to ask, but I just wanted to know if someone had an answer for this...
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Nuyoah : Mine too
ragamuffin : There’s different settings where you can have Diluted or Average Cost shown
Qui Vivra Verra : it is because sold off at a price which is lower than what u buy
LFG MikeOP : My bad for being confused by this... but, are you saying that if I sold my shares at a price higher than the average price paid, THAT would change my share price average?
2girldad : There are many ways to sell, FIFO, FILO, highest cost first, lowest cost first, etc.
I my case, I typically sell in the following order depending on length of position held.
Less than a year held:
1st highest cost, then FILO, then if I still hold more and want to exit completely before 1 year it doesn’t matter.
This will give you the lowest taxable income assuming profit, or will give you highest write off assuming loss. It will also lower your “avg cost”.
For positions held over a year: lowest cost, FIFO (assuming held for over a year), then FILO.
This should give the highest return (remember ~20% taxes) assuming profit. This will raise your “avg cost” and be more beneficial if the asset loses value, potentially creating additional tax loss harvesting potential.
This is my method, NFA. Contact your accountant for tax implications for specific scenarios. Good luck!
LFG MikeOP 2girldad: I understand what you are saying, and I never even considered the idea that I could control which shares are sold.... but how would you control which shares are sold first on Moo Moo? Thanks for all the info so far!