A "Stock Average Calculator" is a tool that helps investors figure out the average price they've paid for shares of a particular stock, especially when they've bought that stock multiple times at different prices.Think of it like this:
Imagine you buy shares of Company X:
First, you buy 10 shares at ₹100 each. (Total cost: ₹1000)
Later, the price drops, so you buy another 15 shares at ₹80 each. (Total cost: ₹1200)
Now, you own 25 shares, but at what average price did you buy them? It's not just (100 + 80) / 2 = ₹90.
This is where a Stock Average Calculator comes in. It uses a "weighted average" calculation to give you the true average price.