James Chen, CMT is an expert trader, investment adviser, and global market strategist. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and ...
To calculate a price-weighted average, sum the stock prices and divide by the number of stocks. This average reflects changes in higher-priced stocks more than lower-priced ones. Use price-weighted ...
Use a weighted average to evaluate stock performance if purchased in multiple transactions. Calculate weighted average by multiplying share price by quantity, then divide by total shares. Knowing your ...
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