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Stocks, by definition, are certificates that entitle you to a portion of a company’s ownership. For example, if a firm has 100 existing shares of stock and you acquire five, you will be entitled to 5% of the company’s assets and earnings.
Unlike bonds, stocks allow you to become a “shareholder” in the company. There are two sorts of stocks: common and preferred. Common stocks offer you the ability to vote at shareholder meetings. The latter allows you to vote but often gives you a larger portion of the assets.
This stock return calculator’s main principle is that you buy stocks when they’re cheap and sell them when their value rises. Following is the formula to calculator stock profit:
Profit = [(SP * No) – SC] – [(BP * No) + BC]
where:
SP denotes the price of a stock for sale.
No. is the number of stocks you trade,
SC is the selling commission
The buying stock price is BP, and
The BC stands for the Buying Commission.
Commissions can be expressed as fixed monetary values or as a percentage of the price in this stock investment calculator. When you enter one of these two values, the other is automatically calculated.
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