How to Calculate Stock Returns

It is said that the stock market is $51 trillion, but how we get a piece of that money pie is the subject of stock returns. From listed markets, or outcry markets, to the NASDAQ, people have been trading the stock market for hopes of high profits over the long run. This article will not cover the basics of stock exchange, buying or selling, but rather it will focus on the calculations of loss, gain and dividends.

Instructions

1. Look at increase or decrease in the price of the share. Calculate your earnings or losses by subtracting the price paid for the stocks by the current value of the stocks. Then divide the price paid for the stocks. Current value of the stocks – Price paid for the stocks Price paid for the stocks

2. Record the result as a percentage. This percentage is the return on your stock.

3. Add dividends into the equation. To do this, sum up the dividends and current value of stocks, minus the price paid for the stocks. Divide the result by the price paid for the stocks.

4. Record the result as a percentage. This percentage is what you actually make or lose. Remember that dividends, interests and other earnings apply to the real results for your stock returns.