What is cost basis?Cost Basis
How much you spent in total to buy those shares.
Learn “cost basis” in an animated lesson
- Stock BasicsWhat Is Buying?
Buying means swapping cash for shares. Your cash goes down and your shares go up, but at the moment you buy, your total assets don't change.
- Stock BasicsUnrealized Gains and Losses
While you hold a stock, your P&L moves every time the price moves. Until you sell, it's only a number on paper.
- Stock BasicsWhat Is Selling?
Selling means turning the shares you hold back into cash. In a regular account you can only sell shares you already own.
Related terms
See how “cost basis” works for yourself with an animation you can drag and play.
Go to “What Is Buying?”