FIFO (First In, First Out)
InvestingAn accounting method assuming the first shares purchased are the first sold, used to calculate capital gains.
Example
Example: Consider an investor building a $100,000 portfolio. FIFO (First In, First Out) — an accounting method assuming the first shares purchased are the first sold, used to — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.