Explanation of Cost Price Options

In Sahm, there are two cost price calculation methods: Avg.cost (Average Cost) and Avg.price (Average Price). Below are the formulas and explanations for each:

1. Avg.cost = (Net Buying Amount + Fees)/Holding Shares

  • This includes both the buying price and fees per share.

2. Avg.price = Net Buying Amount/Holding Shares

  • This only considers the buying price without including fees.

Example Calculation:

  • You buy 100 shares of Stock A at $5 per share.
  • Later, you sell 10 shares at $7 per share.
  • Then, you purchase an additional 100 shares at $6 per share.
  • Suppose the stock trading fee is 1% of the transaction amount.

At this point, you are holding 190 shares. Below is the detailed calculation for both cost price methods.

Action

Quantity

Net Amount

Fees

Buy

100

SAR 500

SAR 5

Sell

10

SAR 70

SAR 0.7

Buy

100

SAR 600

SAR 6

As a result, the calculated outcomes for the two cost price methods are as follows:

Avg. Cost

Avg. Price

{ (500+5) - 10* (500+5)/100 + (600+6) } / (100-10+100) = SAR 5.58

 ( 500- 10* 500/100 + 600 ) / (100-10+100) = SAR 5.53

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