The Average Price of a stock represents the weighted average cost at which you acquired your shares, factoring in all associated transaction fees, such as brokerage fees, taxes, and other charges.
Why it matters:
Including all fees in the calculation of the Average Price provides a precise and realistic view of your total investment cost. This transparency ensures that you fully understand the breakeven point for your investments, helping you make better-informed decisions.
For example:
If you purchase 10 shares at ₱100 each and pay a total of ₱20 in fees, your Average Price per share is not ₱100 but rather ₱102.
This adjustment reflects the true cost of acquiring the shares, providing a clearer picture of your investment's profitability.
Sample Calculation:
Item | Calculation | Amount (₱) |
Cost per Share | 10.00 | |
Number of Shares | 1,000 | |
Transaction Value | Market Price × Number of Shares | 10,000.00 |
Broker's Commission | (0.25% × Transaction Value) + 12% VAT | 28.00 |
PSE Transaction Fee | 0.005% × Transaction Value | 0.50 |
SCCP Fee | 0.01% × Transaction Value | 1.00 |
Total Fees | Broker’s Commission + PSE Fee + SCCP Fee | 29.50 |
Total Cost | Transaction Value + Total Fees | 10,029.50 |
Average Price per Share | Total Cost ÷ Number of Shares | 10.0295 |
Unrealized P&L (Profit and Loss) refers to the potential gain or loss on your investment based on the current market value of the asset, assuming you haven’t sold it yet.
Unrealized P&L includes estimated selling fees, providing a more accurate picture of your potential returns after factoring in the costs of closing your position. These fees include brokerage commissions, taxes, and other charges associated with selling your investment.
Why this is important:
Clearer Financial Picture:
By including estimated selling fees, you get a more realistic assessment of how much profit or loss you can expect if you decide to sell.
Better Decision-Making:
Helps you evaluate if selling the asset at its current market price aligns with your financial goals, after accounting for associated costs.
Sample Calculation:
Item | Calculation | Amount (₱) |
Current Market Price per Share | 12.00 | |
Number of Shares | 1,000 | |
Transaction Value | Market Price × Number of Shares | 12,000.00 |
Broker's Commission | (0.25% × Transaction Value) + 12% VAT | 33.60 |
PSE Transaction Fee | 0.005% × Transaction Value | 0.60 |
SCCP Fee | 0.01% × Transaction Value | 1.20 |
Sales Tax | 0.6% x Transaction Value | 72.00 |
Total Selling Fees | Broker’s Commission + PSE Fee + SCCP Fee + Sales Tax | 107.40 |
Potential Net Proceeds from Selling | 11,892.60 | |
Unrealized Gain/Loss | Potential Net Proceeds - Total Cost | 1,863.10 |