Definition

A sale price is an amount a trader pays for a good financial commitment, and the price becomes the investor’s price basis for the calculation of a profit or loss when the investment is sold out.

Brief Explanation of Sale price

In IRS Form 1040, Schedule D, investors report the sale price of a good financial commitment for tax purposes. When a trader sells some or all of his financial commitment holdings, he reports realized gain or loss.

For tax purposes, a realized gain is reported when a trader sells some or all of his financial commitment holdings; otherwise, an unrealized gain or loss is reported. If the trader adds to the stock position, he can determine a new calculated regular price by adding the amount of money of the new revenue and the additional shares to the calculation. Trading purposes require the trader to calculate the calculated regular price, which equals sales and share revenue.