What is the difference between current price and average price per share

The difference between the current price and average price per share lies in their representation of the market's valuation of a company's stock:

1. Current Price:
   • The current price is the most recent market price of a single share of stock.
   • It represents the market's current valuation of the company.
   • This price can fluctuate based on market demand, investor sentiment, and company performance.
2. Average Price per Share:
   • The average price per share is the arithmetic mean of all the prices at which a shareholder has purchased a company's stock.
   • It includes any reinvested dividends and adjustments for stock splits or consolidations.
   • This average price is calculated from the inception of the shareholder's holding in the portfolio.
3. Key Distinctions:
   • The current price reflects the market's immediate perception of the stock's value.
   • The average price per share is a historical measure that can help investors assess their own investment costs.
   • While the current price is influenced by many factors, the average price per share is primarily used for internal investment analysis and is not relevant for tax purposes.

In conclusion, the current price represents the market's current valuation of a company's stock, while the average price per share is a historical measure that provides insight into an investor's individual transaction costs and helps in making investment decisions.