Cost basis is the purchase cost of a particular security, including commission charges. Importantly, a cost basis can be established over a series of purchases of the same security, not just one trade ...

Chad Langager is a co-founder of Second Summit Ventures. He started as an intern at Investopedia.com, eventually leaving for the startup scene. Katrina Ávila Munichiello is an experienced editor, ...

People invest with the hope of earning a return over time. But what happens when you choose to sell? Cost basis is key to understanding your tax obligations and the true profit of your investments.

Inherited stocks get a basis reset to market value at the owner's death, reducing capital gains tax on future sales. Heirs cannot use losses prior to the original owner's death to offset other ...

ROI is an important measure of an investment's performance but it has some drawbacks. Andrew Beattie was part of the original editorial team at Investopedia and has spent twenty years writing on a ...

The cost basis of a stock is the value of that stock or asset at a certain time, usually the time of purchase. It's normally calculated for tax purposes, so it's important to understand the factors ...

A: Let's say that you buy 100 shares of MacDonald Farms Inc. (ticker: EIEIO) for $50 each, paying a $10 commission. Your cost basis is the purchase price ($5,000) plus the commission, or $5,010. The ...

Don’t ignore your cost bases for your investments, as you will most likely need to know it at some point. If you want to calculate how much you've gained or lost on an investment, you'll need to know ...