April 15th, 2011, 07:31 PM  #1 
Newbie Joined: Apr 2011 Posts: 2 Thanks: 0  Selling shares
Hi all, I have a question relating to share trading, I hope someone can help me out with. Here is the scenario: I buy 120,000 shares in stock AAA at $1.00 per share. I buy another 57,000 shares in stock AAA at $1.46 per share. I then buy 80,000 shares in AAA at $0.96 per share. To sum this up, I have 257,000 shares. (120,000 + 57,000 + 80,000) and this cost a total of $280,020. ((120,000 x 1) + (57,000 x 1.46) + (80,000 x 0.96)) Therefore my average price per share is 257,000 / 280,020 = $0.91779158 per share. I decide to transfer 100,000 shares to a friend using this price. So the question is: How many shares do I need to sell from each parcel to get the average price per share? I would love it if someone could post the steps involved to work this out. Cheers! 
April 16th, 2011, 12:04 AM  #2 
Newbie Joined: Apr 2011 Posts: 2 Thanks: 0  Re: Selling shares
Hi, Please ignore the above example. It confused even me and the average price is incorrect. My apologies. Here is another example which I hope makes it clearer. I buy 1000 shares in AAA at $1 per share. So cost = $1000 The stock went up and I decide to buy another 5000 shares in AAA at $2 per share. So cost = $10,000 I again buy another 4000 shares in AAA at $3 per share. So cost = $12,000 So totally, I have 10,000 shares and it cost $23,000 Therefore my average price per share is $2.30 (23,000 / 10,000) I decide to sell 3000 shares at $2.30, and I want to take in out in proportion to the the parcels. (pro rata) So question: How many shares should I sell from each parcel to maintain the average? 

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