1. What is "cost basis" and how is it calculated?
Cost basis is what your current shares actually cost you. It's calculated as:
Cost basis = WAC × shares you hold now
WAC (Weighted Average Cost) is your average cost per share. It updates every time you buy shares or receive free shares:
- Buy 10 shares at RM100 in ECF round → WAC = RM100, cost basis = RM1,000 (10 shares)
- Get 10 *free shares in ECF round → WAC drops to RM50, cost basis stays RM1,000 (20 shares)
- Buy 5 more at RM110 in PSTX → WAC rises to RM62, cost basis = RM1,550 (25 shares)
Selling shares doesn't change your WAC — it only reduces your share count, so your cost basis drops proportionally. For example:
- Before selling: You hold 25 shares with a WAC of RM62.
Cost basis = WAC × shares held = RM62 × 25 = RM1,550 - You sell 5 shares. WAC stays at RM62.
- After selling: Cost basis is recalculated using the same WAC, but with your new (smaller) share count:
Cost basis = WAC × shares held = RM62 × 20 = RM1,240
Your cost basis isn't a fixed number, and it isn't just your original investment amount — it moves every time you buy or sell.
*Note: Free shares are only given if the issuer chooses to offer them — not every investment includes them.
2. What's my gain/loss, and why are there two kinds?
Some of your gain is still on paper, and some you've already banked — that's the difference between unrealised and realised gain/loss:
- Unrealised (on paper): This is the profit or loss you'd have if you sold your remaining shares right now — it moves up and down with the market.
(current indicative value − WAC) × shares held - Realised (locked in): This is profit or loss that's permanent once you sell shares — it doesn't change afterward, no matter what the market does.
(sold price − WAC) × shares sold - Total gain/loss = unrealised + realised
Example: You hold 20 shares with a WAC of RM62, and the current indicative value is RM100.
- Before selling:
- Unrealised gain is (RM100 - RM62) x 20 = RM760.
- Realised gain is RM0.
- Sell 5 shares at RM100:
- Realised gain locks in at (RM100 - RM62) x 5 = RM190.
- Your remaining 15 shares hold an unrealised gain of (RM100 - RM62) x 15 = RM570.
- Your total overall gain remains RM760.
3. What is "indicative value" and where does it come from?
It's the current market reference value used for your unrealised gain/loss. It's called "indicative" because it's a reference point, not a live price you're guaranteed to trade at.
It updates whenever there's a newly completed trade on PSTX (pitchIN Secondary Trading Market), or corporate valuation event (such as a new funding round)
- When the indicative value updates, your unrealised gain/loss and total gain/loss adjust along with it.
- Your realised gain/loss is unaffected by market movement — it stays locked in permanently.