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G
L O S S A R Y |
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Profit or Loss?
Your profit or loss on an investment helps you to judge if you made a good investment or not. To do this, you will add up all of your Dow and Nasdaq deposits. Then you'll compare the amount you have invested to your Portfolio total to see if you had a profit or loss.
Let's go through the following example, step by step.
Say you have invested $112.50 in the Dow and $112.50 in the Nasdaq.
- Add those two numbers together to get your total investment, $225.00.
- Then look up your current Portfolio Total. Let's say it's $236.13.
- Subtract your total investment from your Portfolio total. The result is $11.13. This means there was a profit of $11.13 on your investment.
If the amount you invested was
larger than your current Portfolio total, that would mean that
you had a loss.
You may have heard adults talk about investment returns. These
are usually described as a percentage. For example, someone might
say, "I had a -12% return two years age and a 9% return last
year. Later we'll discuss how to calculate your return percentage.