Average Cost Definition

Average cost is the weighted price paid for assets over time.

What is Average Cost?

It reflects the true entry price of investments.

Average cost helps calculate profits and losses.

Understanding average cost improves decision-making.

Buying at $40 and $60 results in an average cost of $50.

The account balance is the total amount of funds available in a trading account, including cash, profits, and losses, at a specific point in time.

An account statement is a detailed report that summarizes all trading activity, balances, and transactions over a specific period.

Accrued interest is the interest that has accumulated on a financial instrument but has not yet been paid.