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Book cost


Guest Vivek

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Guest Vivek
Posted

Hi there, 

I would like to know book cost, what is it? my book cost is always same. I do not get it. Please explain would be much appreciated. Thanks

  • 4 weeks later...
Posted
On 16/06/2021 at 06:45, Guest Vivek said:

Hi there, 

I would like to know book cost, what is it? my book cost is always same. I do not get it. Please explain would be much appreciated. Thanks

Hi there,

The book cost is the actual cost of buying the shares at the time you bought them.

The market value is the value of the shares there and then at that point in time.

 

Say you bought 100 shares at 200p per share. Your book cost is 100 x 200p = 20000p a.k.a £200

Say the market then goes to 250p per share. Your book cost is still £200 (as the price you paid for the stock hasn't changed), but the market value is now £250

 

I hope this clarifies things but let me know if I can help further. 

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