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How is the capital gain or loss on a stock investment computed

How is the capital gain or loss on a stock investment computed
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Answer #1

Step 1: Calculate the Purchase Total

Multiply the number of shares in every single purchase by the per-share purchase price, then add any brokerage fees.

Step 2: Calculate the Adjusted Cost Basis Per Share

Divide the purchase totals by the number of shares to calculate the adjusted cost basis of each share.

Step 3: Calculate the Sales Total

Multiply the number of shares sold by the per-share sales price and then subtract any broker fees to calculate the sales total.

Step 4: Calculate the Total Cost Basis

Multiply the number of shares sold with per-share cost basis.

Step 5: Calculate the Capital Gains on Stocks

Subtract the total cost basis from the total Sales to calculate the capital gain.

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