How do you calculate the average cost per share?

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To calculate the average cost per share of an investment, you take the total amount of money invested in that asset and divide it by the total number of shares you own. This method provides the average price at which each share was acquired, which can be crucial for assessing the performance of your investment over time.

When you divide the total investment by the total shares, you effectively determine how much you have spent per share. This average cost per share serves as a benchmark against which you can compare the current market price of the shares you hold, helping you make informed decisions about buying or selling in the future.