Maybe someone in here can tell me. Let's say for exaple you buy 5000 shares of XYZ company stock for $3.00/ share($15,000 total). Then you see the price of the stock drops to lets say $ 1.50/share, so you decide to buy 10,000 shares at the new price of $ 1.50 to cost average you price per share down to a rough estimate of about $1.35-1.40/share. Then let's say you want to sell 5,000 shares of XYZ. When you goto sell the 5,000 shares, are the ones sold the shares you bought at $3.00/share, or the ones you just purchased at $ 1.50/share? Are the sale of shares treated and handled as FIFO(First-in-First-Out), or like LIFO(LasT-in-Last-Out)??
My question is how would I know how many shares as well as what price my remaining shares are at what averaged price? I welcome any comments and answers as well as examples on this question.