How can I determine the cost base of the shares?

Find out that the cost base of the shares is important for knowing how much cost per share, what you are responsible for in terms of capital profits and find out how much each shares cost after division. The original base of the cost value is the easiest, because it is simply how much each stock costs when buying. The business value is one of the most important formulas for the cost base of shares, as it determines how much you report for the capital profits tax. When you break down, you can find out how much each stock costs based on the value of the distribution. For calculations of realistic costs, a commission paid for the investment is added to the formula. Great investors can also determine how much each stock costs, because they probably know how much money they have invested. To discover the original cost of stock costs, it is simply a question of knowledge of the full investment and the number of shares purchased. For example, if an investment is $ 20,000 (USD) and 500 shares were purchased, then the investment price is divided by the number of shares, in thisAda leaves a cost base of $ 40 per share.

When you sell shares, another formula is used to determine the capital gain tax. The original value of the shares is deducted from the current value, multiplied by the number of shares sold. For example, if the original value is $ 40 per share and the current value is 50 USD, then the profit is $ 10 per share; If 300 shares are sold, then there is a cost of a cost of $ 3,000.

The company often divides its supplies as it grows. This does not affect your investment, but it changes the cost base of shares. If the company is divided by three and you have 1,000 shares that cost you $ 3, 000 USD, then you would end up with 3,000 shares. The number of shares divided by the original investment would provide the cost of $ 1 per share.

In realistic investment settings, you will need to pay a commission when purchasing shares. This fee should be added to the originDays of investment, so you know the actual amount you spend on the investment. The $ 300 commission for the purchase of $ 20,000 would result in a real total investment of $ 20,300.

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