The weighted average trade price of a stock is the average price based on the price paid for each share sold during a specified period of time. For example, the average price for two trades of a stock, one at $150 and one at $130 would be $140. However, if the first trade was for 100 shares and the second trade was only for 10 shares, the weighted average trade price would be $148 because the first trade had a much higher volume than the second trade.

Multiply the price of the stock for each trade made in the given period by the number of shares in each transaction. This will give you the total value of each transaction. For example, if one trade was for 120 shares at $71, another was for 50 shares at $73, and the last trade was for 130 shares at $69, multiply 120 by $71 to get $8,520; 50 times $73 to get $3,650; and 130 by $69 to get $8,970.

Add the total value of each transaction to find the total cost of the shares. In this example, add $8,520 plus $3,650 plus $8,970 to get $21,140.

Add the shares exchanged in each trade to find the total number of shares exchanged. In this example, add 120 plus 50 plus 130 to find that 300 shares were exchanged.

Divide the total price paid by the total shares exchanged to find the weighted average trade price. In this example, divide $21,140 by 300 to find the weighted average trade price equals $70.47.

References

Writer Bio

Based in the Kansas City area, Mike specializes in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."