I looked up other Reddit threads about this but I couldn't find a satisfactory answer.
Assume for this hypothetical that all trades happen within a 31-day period.
I buy 1 share of AAA for $100. I later buy 1 share of AAA for $90. I later sell 1 share of AAA for $93.
My average price is $95, but my most recent purchase was for $90. Does selling for $93 then count as selling for a gain or selling for a loss?
And what if the order was reversed; what if I had bought a share for $90 before buying a share for $100? Does selling for $93 then count as a loss since my most recent purchase was for $100, or does it count as a gain since my cheapest purchase was for $90?
Thanks!
Leave a Reply