Method of calculating the cost basis of mutual funds by mutual fund companies. Calculation is done by adding number of shares owned to the total dollar amount of those shares. That total is then divided by the number of shares to get the average cost basis, which is multiplied by the number of shares sold. Shareholders do not need to use average cost basis method, it is generally only used by mutual fund companies.
Related information about average cost basis method:
- Average Cost Basis Method Definition | Investopedia
A way of calculating cost basis when figuring out gains or losses from a sale of mutual fund shares. This is done by adding up the number of shares owned as ...
- How to Calculate The Average Cost Basis Method | eHow.com
How to Calculate The Average Cost Basis Method. Cost basis is how much you paid for shares of a security The average cost basis method is an IRS-approved ...
- What is average cost basis method? definition and meaning
Definition of average cost basis method: Method of calculating the cost basis of mutual funds by mutual fund companies. Calculation is done by adding number ...
- Dodge & Cox Funds : Cost Basis
If you elect or are defaulted to the Average Cost basis method for your covered shares, you may retroactively change to another method (revocation) at any time ...
- Cost Basis Reporting Overview - AllianceBernstein
WHY DID ALLIANCEBERNSTEIN CHOOSE THE AVERAGE COST BASIS METHOD? AllianceBernstein has been voluntarily reporting Average Cost on ...
- Default Taxation: The Hidden Costs of Mutual Fund Investing
If the investor has sold shares in the stock fund using the average-cost basis method, he or she must stick with that option for that fund, even for shares bought in ...
- Cost Basis FAQs - USAA | Frequently Asked Questions
Even though the Average Cost Basis method simply totals the cost basis of an entire position and divides it by the number of shares to determine an average ...
- Cost-Basis Reporting: Selecting a Method
Oct 3, 2011 ... All Lord Abbett funds will use the average cost-basis method to compute and report cost basis on sales of shares purchased after January 1, ...