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If i invest $1000 and then sell all shares and its worth a total of $1500 is that a 50% return on investment?


If i invest $1000 and then sell all shares and its worth a total of $1500 is that a 50% return on investment?

Yes.

$1,500 (value after sell) - $1,000 (amount invested) = $500(Return on Investment)

$500 (Return on Investment)/$1,000 (amount invested) = 50% return on investment

yes

Yes, 50% return out of your principal....but u must consider the time value of money also....remember, today`s $1000 is different with Next year`s $1000...although the figures is the same n not the value....it`s decrease over the time...

No, that isnt a 50% return on investment.

Most certainly you did not account for taxes in that calculation.

You also did not include time as a factor in the calculations.

You also did not compare it using any sort of time value of money calculations.

Flat returns on investment are worthless figures, if you bought something for $1 in 1900 and sold it for $2 in 2000 you still doubled your money, but your rate of return per year would be less than 1%.

Note that you would pay taxes on the $1 increase from $1 to $2 also. So you really wouldnt have doubled your money. Your $1.72 or so that you end up with would also be worth about $0.09 in static 1900 dollars. So in actuality you would have nearly lost everything in this investment.

If anything there is not enough information supplied with this question.

Raiddinn Beatdropper

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