invested value + profit (-loss) =?
invested value + profit (-loss) =?
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nimo23 · External communityPost link
External question — Personal Finance Stack Exchange
Author: nimo23
Original post: https://money.stackexchange.com/questions/136333
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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)?
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Venkataraman R · External communityPost link
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Author: Venkataraman R
Original post: https://money.stackexchange.com/a/136336
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CurrentValue1 stands for MarketValue
CurrentValue2 stands for RelativeChange
You don't realize profit/loss, unless you sell the stock. So, there is no cash flow here.
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Bob Baerker · External communityPost link
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Author: Bob Baerker
Original post: https://money.stackexchange.com/a/136352
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$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.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: nimo23 Source score (net votes, not local likes): -2 Original post: https://money.stackexchange.com/questions/136333 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. 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)?
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