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Re: Lou Dina post# 5913

Friday, 11/15/2002 9:53:29 AM

Friday, November 15, 2002 9:53:29 AM

Post# of 47150
Hello Lou, I really wouldn't know. I would be suprised however if Newport, or for that matter any AIM software package, would show average share price. AIM is constructed on a Last-In-First-Out basis, and the conventional way to calculate average share price is on a First-In-First-Out basis. Average share price is just meaningless for AIM. Remember: it is just a metric! It is not an essential quality of your holding.

There is an amusing way to calculate avergage share price in AIM. Take Initial Investment (cash+equity) - Current Cash Reserve. That's is the amount of money that you spent on equity. Divide by the number of shares. Some people don't like this, as all your profits lower the average share price, and may even lead to negative 'average' prices.

Regards,

Karel

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