Calculating the cost basis for stock is a business term that refers to taking into account all of the factors related to a certain purchase of equity, such as fees and taxes, in order to determine the final price paid for the stock. This calculation is essential for working out how much money has been made or lost during a buy or sell transaction, enabling investors to accurately track their overall portfolio performance. By understanding the basics of cost basis calculation, savvy investors can make informed decisions and maximize their return on investment.