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Just curious, how do you guys calculate your stock returns? Assume there is no tax. Which of the two methods below is the most accurate?

Basic info:

Purchase price: $10 * 1,000 shares = $10,000

Purchase fees: $10

Selling price: $15 * 1,000 shares = $15,000

Selling fees: $15

Method 1: [(15,000 - 15)/(10,000 + 10) - 1] = 49.70%

Method 2: [(15,000 - 15 - 10)/10000 - 1] = 49.75%

I mean I know it's not much of a difference, but still compounded with many different stocks it could make a very slight difference in the long run. Also, just want to get the facts right.



Submitted April 08, 2017 at 12:04PM by learner1314 http://ift.tt/2nr3Cjh

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