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What is cost basis?

Quick Answer

Cost basis is your original purchase price for an investment, plus any reinvested dividends and adjustments. Used to calculate your capital gain or loss at sale: sale price - cost basis = gain/loss.

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Warren Team
Updated December 24, 2025
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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