Annualized gain
If stock X appreciates 1.5% in one month, the annualized gain for that sock over a twelve month period is 12*1.5% = 18%. Compounded over the twelve month period, the gain is (1.015)^12 = 19.6%. |
Similar financial terms
Annualized holding period returnThe annual rate of return that when compounded t times, would have given the same t-period holding return as actually occurred from period 1 to period t.
Short Term Gain
The profit realized from the sale of securities or other capital assets possessed for twelve months or less.
Paper gain (loss)
Unrealized capital gain (loss) on securities held in portfolio, based on a comparison of current market price to original cost.
Bargain-purchase-price option
Gives the lessee the option to purchase the asset at a price below fair market value when the lease expires.
Capital gain
When a stock is sold for a profit, it's the difference between the net sales price of securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.
Capital gains yield
The price change portion of a stock's return.
