If you buy a stock for $100 and it goes up .25...?

Question

how do calculate how much you make on a stock when it goes up or down ?

Answer 1

100.00 stock and it goes up twenty five cents.... the real concern when calculating a return on an investment would be you must standardize the return in order to compare and analyze against other investments. In the investment world they use a number of periods the most common would be a one year return or the return calculated for the period of one year (some other common periods would be year to date,1 month,3 month,6 month or any period in which can be compared to a similiar investment for the same period of time. The rest of your question is basic math once you know what the time period for a particular return is that you are attempting to calculate. in the case given(we'll assume with no brokerage fees) one share of stock purchased on Jan 4, 2007 for 100.00 and sold on Jan 5, 2007 for 100.25 results in just a .25 increase or profit but it was only held for one day, if you were to annualiazed that return it would be nearly a 100% annualized return..... but if the same share of stock was bought instead on Jan 4,2006 for 100.00 and sold on Jan 5,2007 for 100.25 the annualized return for the time owned (a year and a day) would be a dismal .0024% or less than 1/4 of 1% ...........pretty bad.........everything is really relative........ the facts are the same, that is the purchase price and sell price, and your profit is the same too..... the only difference....that is the only difference that really matters is what the standardized return really is as it relates to other similiar investments for a comparable time frame (the longer the better 5 years,10 years or even longer.)

Answer 2

OK, we will leave out broker fees and all that:
Now you spent $100 for the stock.
It went up $.25 (25 cents right? On a stock quote that would be seen as 1/4).
So 100 x .0025 = .25.
Now take .25/100 = .0025%

So your profit here is $.25, or 25 Cents, and .0025% profit...
Cool???

Answer 3

Sell Price - (Purchase Price + Broker Fees [ buying and selling fees]).
If your number is Positive, that what you profit. If the number is Negative, that what you lost.

Example; You buy 100 shares for $100 per share and it cost you $10 to buy and $10 to sell.
Your Purchase price is 100x$100= $10,000 plus you add $20 for your buy and sell and your total purchase price is $10,020! You can divide this 10,020 / 100 = $100.20 per share is what it actually cost you. So, as you can see. If, your $100 per share stock goes up to .25 cents you made a profit of .5 cents per share and a total of $5.