Introduction to Personal InvestingThe Basics |
What is a simple example of return on investment? |
If you bought a stock for $5,000 on January 1, and sold it one year later for $5,500, your return would be 10%. You can compute this by subtracting $5,000 from $5,500, dividing this number ($500) by $5,000, and multiply by 100. This means your investment earned a one-year return of 10%.