LogFAQs > #949012751

Red sox, I've been playing with my cost basis for the last hour or so and I can 100% confirm that your average cost for a stock is on the shares you currently own, and it does not take into account any other trades, losses or gains, you may have made with the stock previously.

Before funds settle, Ameritrade (or Gainskeeper anyway) let's you assign the shares you've sold to specific buy orders. Very cool. Basically, when I assigned my AVCTW sell orders to shares I bought really low, my realized gains go up, as I've obviously made more money, but so does my cost basis, as the remaining shares I now own I've bought higher.

So yeah, in the scenario I presented, if you buy 1000 shares of a company, then buy and sell 500 more, the cost basis on the 1000 original shares would be unchanged after funds have settled for the 500 additional shares. Doesn't matter if you sold those additional 500 for a huge gain or loss.

Maybe you already knew this and my wording was weird last post.

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- Blur -
Welcome to your Divinity.