Cost Per Share Calculator
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Cost Per Share Formula
The following equation is used to calculate the Cost Per Share:
\[ \text{CPS} = \frac{\text{TCS}}{\text{S}} \]
Where:
- CPS is the cost per share ($/share)
- TCS is the total cost of shares ($)
- S is the number of shares purchased
To calculate the cost per share, simply divide the total cost by the number of shares received.
What is Cost Per Share?
Definition:
Cost per share is a term used in finance to describe the cost of one share or stock in a company. The cost per share remains the same as it was when the shares were purchased, although the value of those shares may change over time.
How to Calculate Cost Per Share?
To calculate the cost per share, you divide the total cost of purchasing the shares by the total number of shares purchased. This calculation helps investors understand the average price they paid for each share, which is crucial for tracking investment performance and making informed financial decisions.