Average Cost Basis Method

Business, Legal & Accounting Glossary

Definition: Average Cost Basis Method


Average Cost Basis Method


Full Definition of Average Cost Basis Method


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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Definition Sources


Definitions for Average Cost Basis Method are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.