The return on a share is the ratio of the amount of income from the shares held to the size of their value. Moreover, there are two main components of this indicator. This is the income that the owner of the share receives as a result of the difference in the rates of its sale and purchase and income in the form of certain dividends (dividend income).
Instructions
Step 1
Determine the current stock return. This value will show how much you can get (how much benefit) if you sell shares at the moment, at their current market price. To do this, subtract from the value of the share at which it is currently being sold the value of the share at which you purchased it. For example: you bought a share for 100 rubles. Now it costs 120 rubles. In this case, it turns out: 120-100 = 20.
Step 2
Divide the resulting value (20 rubles) by the amount of investment. That is, the amount of investments is the value of a share, if you bought several shares, then it would be necessary to multiply the price of one share by its number. In this case, it turns out: 20 rubles divided by 100 rubles (20: 100 = 0, 2).
Step 3
Multiply this value by 100%: 0.2 * 100% = 20%. Thus, the return on the stock is 20%.
Step 4
Calculate the return on a stock for a specific period, for example, for a year. To do this, use the following formula: Profitability = profit: investment amount * 365 days: term * 100%. For example, the term is 200 days. Then from the previous example it turns out: 20: 100 * 365: 200 * 100% = 36, 50%.
Step 5
You can make the measurement period not in days, but in months. In this case, simply substitute the required number of months into the formula, replacing 365 days in the numerator, for example, 17 months.
Step 6
In turn, the income from a share is always formed due to the existing difference in value when buying and selling it. In this case, the result (value) obtained as a percentage of the purchase price is called the stock return. In addition to this income from the difference in price from the purchase and sale of a security, the investor can receive additional income from the payment of dividends, and the return on the stock can be positive, negative (in this case, you will receive only a loss on securities) or zero.
