Explanation of the different price sources

gerdemb gnucash at ibeni.net
Tue Feb 28 08:44:09 EST 2012


Good morning,

Can someone help me understand the differences between the the four
different price sources used by reports. I can only find documentation for
three of them which states:

Weighted Average - gives you a graph of the weighted price of all
transactions. It will not take into account prices defined in the price
editor.

Most recent - displays the changing value of your stocks based solely on the
most recent price available from the price editor. The price figuring in
your stock transactions is not considered.

Nearest in time - the graph is exclusively based on the prices available
from the price editor. The value of your stock at each step and point in
time is calculated based on the nearest available price in the price editor.

If I understand correctly, "most recent" and "nearest in time" use data
exclusively from the price editor completely ignoring the prices of the
securities or currencies during transactions. The "most recent" option 
simply takes whatever is the newest price in the price editor and uses only
that value for the entire report. The "nearest in time" option takes the
price that is closest to the date of the of the report (as opposed to the
current date) and that value can change if it's a report that graphs a
period of time. The "weighted average" only uses prices from transactions
and ignoring prices from the price editor. Is this correct?

Finally, what does "average cost" do? All I could find about it was an old
e-mail thread, but no documentation...

Thanks for any and all help.

Cheers,
Ben

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