Business, Legal & Accounting Glossary
Method of calculating the cost basis of mutual funds by mutual fund companies. Calculation is done by adding number of shares owned to the total dollar amount of those shares. That total is then divided by the number of shares to get the average cost basis, which is multiplied by the number of shares sold. Shareholders do not need to use average cost basis method, it is generally only used by mutual fund companies.
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This glossary post was last updated: 20th November, 2021 | 0 Views.