When you buy shares, when do you earn your profit? Is it at the end of the fiscal year or one year after buy?

Question

When you invest on the stockmarket, when do you get your eranings per share?

Answer 1

You don't REALIZE any profit until 1) dividends, if any, are paid and/or 2) you sell the shares, realizing (if the stock has increased in value) a "capital gain".

Otherwise, the appreciation (or, if you are unfortunate, depreciation) of the shares is purely a "paper [i.e., non-cash] profit", which can be calculated, if the annual return is desired, one year after the date of purchase.

Answer 2

If you mean your div-id end when the company declare one, that could be a week to a full year away. This is interest not profit. You make a profit only when you sell off your stock for more than you paid for it: again this depends on timing. You could also realize a lost. The safest investment for you mite be US Savings Bonds, with them you all ways realize a profit after six months when you cash out, I think I am wrong here,I believe cash out can not be done until the bonds are a year old now. Ask your local bank, they will know if it is 6months or a year. That is also were you cash them.

Answer 3

You buy shares of technical "ownership" in the company. That ownership value fluctuates with the price of the company value. You make most of the profit by buying one day for a low price and then waiting until the company value rises and you sell your share of the ownership for a high price. However, when you have shares and hold on to them, you receive small dividends at the end of every fiscal year based on how many shares you own.Could also be every fiscal quarter depending ont he company you invested in.

Answer 4

You don't get any earnings per share. You only make money if the company pays a dividend (usually annually), or you sell your stock at a profit. You should hold a stock for at least a year to avoid the tax penalty.

Answer 5

Either:

1) When the company pays out a dividend (ie a share of profits) to its investors. This is generally done quarterly, though not always--the money is distributed when the management feels like distributing it.
2) When you sell the shares to someone else for more than you paid for them.

Answer 6

For starters the final public of trading that is going on isn't finished by ability of smart traders so developments that you spot contained in the marketplace like this are not any more an precise depiction of what's the finished approach for the most worthwhile investments. although, on occasion it would want to be smart to purchase stocks in a employer even as its revenue are extreme because they could basically bypass larger and better. you're properly although ideally you want to purchase a inventory in a sturdy employer even as is first putting out out or maybe as a employer is in a down cycle and the inventory expenditures are low so that you'll promote them for a earnings later even as they are nicely worth much better. There perchance yet another excuse human beings purchase stocks even as a employer is doing nicely and that is because they want to placed them selves to regulate as many stocks contained in the employer as they could because they plan to purchase the employer or carry out a touch type of antagonistic take over. I doubt attempt to fret too a lot about no longer being waiting to promote your stocks there can be someone to purchase them, and there is often the prospect that the employer relating the stocks will purchase them from you. when you're that in contact about your investments contained in the inventory marketplace you may evaluate making an investment a lot less contained in the inventory marketplace and bigger in decrease probability investments and certain investments although a third social gathering like a economic employer or an funding agency.

Answer 7

well you don't really get anything....earnings per share is just a measure of how well the company is doing. you will get some return on your investment if and when the company pays out dividends, which can be anytime. you can also get a return on your investment if you sell the share at a higher price than you bought it.

Answer 8

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Answer 9

As soon as you sell the stocks, you have either a realized profit or loss

Answer 10

Earnings (or loss) on stocks are calculated when you sell them.