Average Basis

In order to simplify the process to run reports, TradeMax allows you to use Average Basis Method For Mutual Fund Cost Basis Calculating. With this feature, You can figure out your gain or loss using an average basis only if you acquired the funds at various times and prices.

Example 1.

You bought 300 shares in the LJP Mutual Fund: 100 shares in 2006 for $1,000 ($10 per share); 100 shares in 2007 for $1,200 ($12 per share); and 100 shares in 2008 for $2,600 ($26 per share). Thus, the total cost of your shares was $4,800 ($1,000 + $1,200 + $2,600). On May 11, 2009, you sold 150 shares. The basis of the shares you sold is $2,400 ($16 per share), figured as follows.

1)

Enter the total adjusted basis of all the shares you owned in the fund just before the sale. (If you have made an earlier sale of shares in this fund, add the adjusted basis of any shares you still owned after the last sale and the adjusted basis of any shares you acquired after that sale.)

$4,800

2)

Enter the total number of shares you owned in the fund just before the sale

300

3)

Divide the amount on line 1 by the amount on line 2. This is your average basis per share

$16

4)

Enter the number of shares you sold

150

5)

Multiply the amount on line 3 by the amount on line 4. This is the basis of the shares you sold

$2,400

More detail, Please check http://www.itrademax.com/ipress/trademax-glossary/average-basis.htm

Notes: Once you select to use an average basis, you must continue to use it for all accounts in the same fund. (You must also continue to use the same method.) However, you may use the cost basis (or a different method of figuring the average basis) for shares in other funds, even those within the same family of funds.

The following wizard will tell you how to build a Black List.

  1. Click main button , and a main menu opens:
  2. Click Options button, and then select Avg Basis tab,  the following dialog box displays:

Function
Description
1.Avg Basis Tab After clicking Options button, you should select Avg Basis tab.
2.Account Select the account which you want to use average cost rule.
3. Year Select the fiscal year which you want to use average basis rule.
4. Fund List Funds symbol lists in the account.
5.Avg Cost List the symbols which use Avg Basis event in specific fiscal year.
6.Append Button Select the funds which you want to use average basis rule and Press”Append” Button.