Return on investment


 

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Return on investment

The overall profit (or loss) on an investment expressed as a percentage of the total invested. For example: A person invests £5,000 in the shares of a company and some time later has received £100 in dividends with the value of the shares now £5,200. The return on investment is: (£100 + £5,200 - £5,000) /£5,000] x 100 = 6%



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Alternative investment

Alternative investment

Investment in items other than stocks, bonds or other securities. Wine, art, antiques are examples.


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Regulated investment company

An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided.


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A business that specializes in providing investment advice for a fee. All advisers of an advisory service must be registered with the Securities and Exchange Commission.


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The line of required returns for investment projects as a function of beta (nondiversifiable risk).


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Gross, or total, investment minus depreciation.


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