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cost basis meaning stock Bnb XRP aave Bonk coinbase futures litecoin futures cardano futures

What is cost basis?

Cost basis refers to the original price of an asset. Cost basis is sometimes called tax basis. How Does Cost Basis Work? Let's assume you purchase 100 shares of XYZ Company stock for $5 per share, and you pay a $10 commission for the purchase. Your cost basis would be:

What is the difference between cost basis and capital gains?

The term can also be used to describe the difference between the cash price and the futures price of a given commodity. Cost basis is the original price that an asset was acquired for, for tax purposes. Capital gains are computed by calculating the difference from the sale price to the cost basis.

What is the cost basis of an investment?

At the most basic level, the cost basis of an investment is the total amount originally invested, plus any commissions or fees involved in the purchase. This can either be described in terms of the dollar amount of the investment, or the effective per-share price paid for the investment.

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