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Average stock price RRS feed

  • Question

  • We sold a stock (no dividends) and repurchased the same stock a month later. Money investment records for the stock show:

    1) buy 100 shares at $522.84 per share

    2) sell 100 shares at $559.00

    3) buy 105 shares at $528.60

    Then portfolio manager shows the average cost as $523.97 which is wrong. The account had only 1 stock and the value went to zero after transactions 1 and 2. Transaction 3 starts a new position. How do we get Money to report the new average cost as $528.60? 

    Even if transactions 1 and 3 were averaged, the price is still wrong.  (100*522.84+105*528.60) / (100+105) = $525.79

    Friday, April 26, 2019 11:29 PM

All replies

  • I don't use that column. I do use the Cost Basis column.

    Try un-ticking Portfolio->ChangePortfolioView->ShowClosedPositions

    See if that improves things. 

    Also, are you considering commissions? That is  probably not it, because for such big transactions, commissions are going to have a very small effect.

    Saturday, April 27, 2019 2:50 AM
    Moderator
  • I've been where you are and I have never been able to understand how Money behaves when you buy, sell completely, and rebuy an investment. I'm using Money 2000 International English ~ other versions may behave differently.

    Now I amend the name of the original investment (by prefixing with letter Z), create a new investment account for the new holding (of the original stuff), create a report that addresses transactions in both old and new accounts, export this report to Excel, and aggregate or manipulate in Excel. It's a bit tedious but less aggravating.

    Teabag

    Saturday, April 27, 2019 9:28 AM
  • Many thanks for your views gents. I had made a mistake somewhere but unfortunately can't say where I made the mistake.  I solved the problem by deleting the investment and cash transactions in the account and re-entering them for that stock.  

    There could be a lot of value in preparing a short book on investments with MS Money don't you think? 

    I was also thinking that Bill Gates made a very significant contribution to my financial education with the development of Money. He probably doesn't realize the extent to which this program has had an impact. If I had access to him I'd tell him as much and encourage him to get an updated version created. This program in my view is a big contribution to spreading wealth among the masses. 

    Sunday, April 28, 2019 2:04 AM
  • I guess, back in the 1990s, Bill Gates and a much smaller Microsoft had to decide whether to ship Money much as we know it (with free access to servers that would dump share prices) or make access to those servers contingent on a payment of a subscription (much like many anti-virus companies).

    Today some may conclude that Bill called it wrong; the attempt to maintain an income stream, by issuing modified versions of Money (two steps forward and one step back) every year, eventually ran out of steam.

    But those who were computer literate in the 1990s may remember that, back then, the world-wide-web was not very wide. Giving Money users, with investment portfolios, free access to the price servers would certainly have encouraged them to use the net. Now Microsoft licenses (if you read the small print you will know we don’t own) operating systems and applications that ‘report home’ and this only works because Bill Gates and his company can reasonably assume (insist) that we are connected to the net.

    Today Microsoft is no longer small ~ perhaps Bill called it right.

    Teabag

    Tuesday, April 30, 2019 6:37 AM
  • fyi

    Will post the reply if there is one. 

    On Sat, Apr 27, 2019 at 7:21 PM troberts  wrote:

    Ladies and Gentlemen of the Microsoft Board

     

    In my humble view, financial education is a key element in wealth distribution. It has been said that wealth is good provided everyone is wealthy (‘Abdu’l-Baha).

     

    My financial education got off to a significantly good start with the Microsoft Money program. There is a wealth of people who still use the sunset and other versions. If it was Bill Gates who got the software started, then a big sincere thank you.  I expect that Microsoft has a wealth of experience in CSR activities.

     

    I write this message not on behalf of myself or the user group that I query periodically for answers to questions on Money, but for the many people in Canada, the US and Africa (I spent some 20 years working there for the African Development Bank – AFDB - and as an engineering consultant) whose livlihoods could be improved if they knew better how to control their finances. I worked with the brightest people in Africa while at AFDB and I know they would encourage me in writing to you.

     

    So, many thanks to Microsoft on behalf of myself for an excellent education. The software made me curious to learn more. I think you have an opportunity to continue changing the world.

     

    Keep up the fantastic work

     


    Thursday, May 2, 2019 5:22 AM