Rate of return
Rate of return is like a measure of how good you are at growing your money. Imagine you have a piggy bank in which you put some of the money that you have saved up. And every day, you put in a little more money.
Now, after some time, you open the piggy bank, and you see that you have more money than what you put inside. This is called "return," and it indicates how much your money has grown.
Rate of return is a way to measure how much the money in your piggy bank has grown compared to the money you put in. So, if you put in $10 in a year, and you have $12 now, your rate of return is 20%.
The higher your rate of return, the better you are at growing your money. But it's also essential to keep in mind that the return on your investment is not guaranteed. The amount of return can change based on different factors such as market conditions, inflation, and the performance of the company whose stocks you might have invested in.
Now, after some time, you open the piggy bank, and you see that you have more money than what you put inside. This is called "return," and it indicates how much your money has grown.
Rate of return is a way to measure how much the money in your piggy bank has grown compared to the money you put in. So, if you put in $10 in a year, and you have $12 now, your rate of return is 20%.
The higher your rate of return, the better you are at growing your money. But it's also essential to keep in mind that the return on your investment is not guaranteed. The amount of return can change based on different factors such as market conditions, inflation, and the performance of the company whose stocks you might have invested in.
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