Hi everyone,
I hold 500 stocks of ABC company @$12, current price of the stock is $10, now how much additional stocks I need to buy such that average stock price will average down to $10? Is there any shortcut formula or calculator available?
just do it on excel, it should be just simple weighted average i suppose.
In Excel I am able to calculate average price easily, but not the number of stocks required, I had to do plug and check everytime
Learn to use goal seek.
Infinitely many.
Solve:
($12 × 500 + $10_n_) / (500 + n) = $10
Good idea in general, but it will fail on this specific problem, as the answer is infinitely many.
Thank you!
You will never have average of 10 as long as you have at least one share purchased @12.
Or I don’t understand the question. What does “average down” mean?
Hence: infinitely many.
Oops, have not seen Magician answering. But yes, I think the same. Impossible or infinite.
As you add more shares at $10 apiece, the average price of your shares will approach $10 / share asymptotically.
Had to google the word ‘asymptotically’.
Bro. An asymptote is like 7th grade math.
Bro. I’m Hungarian. Still this is not an English but a Latin word, but I’ve never heard. We probably called it differently in 7th grade. It was in 1987.