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REDDIT

Gain calculations on broker platforms - dividend reinvesting

W
Feb 25, 2025 · 18:53

Curious how Robinhood or other brokers calculate your gain, when you have dividends reinvested (with fractional shares)

Just because it appears like they're doing the simple math of: current price x shares minus average cost x shares, but the average cost is actually on a lower amount of shares, so it's understating your gain. Let me know if my math is wrong as well