Personal Finance & Money Asked on May 15, 2021
What is the financial name which a broker would give to the following returns:
invested capital = 1000
profit = 2%
currentValue1 = 1000*1.02 = 1020 $
currentValue2 = 100%+2% = 102%
MarketValue is not the right name for currentValue1, if the position is already closed.
What does currentValue1
and currentValue2
stand for? Are these the gross return
, the cash flow
or have the two other names (common in financial world)?
$1,000 is investment or cost basis
If the position is still open, $20 is the current gain which is 2% (ROI) and the current or market value would be $1,020.
If the position is closed, it would be called the final value or proceeds from sale.
There are a variety of other interchangeable financial terms to describe the above (profit, gain, yield, return, etc.).
My guess is that this is from a textbook because terms like currentValue1
and currentValue2
tend to come from the academic world.
Correct answer by Bob Baerker on May 15, 2021
You don't realize profit/loss, unless you sell the stock. So, there is no cash flow here.
Answered by Venkataraman R on May 15, 2021
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