What is the meaning of yield in finance

Crafts from polymer clay with their own hands. A large selection of tips and examples of products from polymer clay https://clay-crafts.com/

Yield is an important concept in finance that is used to measure the return on an investment. It is a measure of the amount of return an investor can expect from an investment, expressed as a percentage of the original investment. The yield is a way of comparing different investments and determining which one will provide the greatest return. It is also used to compare the performance of different investments over time.

Yield can be calculated in several ways, depending on the type of investment. For stocks and bonds, the yield is calculated by dividing the annual dividend or interest payment by the current price of the security. For example, if a stock pays a dividend of $2 per share and the current price of the stock is $50, the yield would be 4%.

Alles über Träume und Träume. Interpretation und Bedeutung der Träume https://traumauslegung.com/

For mutual funds, the yield is calculated by dividing the total return of the fund over a certain period of time by the current net asset value of the fund. For example, if a mutual fund has had a total return of 10% over the last year and the current net asset value is $50, the yield would be 20%.

Yield is an important concept in finance because it helps investors determine which investments are most likely to provide the greatest return. It is also used to compare the performance of different investments over time. By understanding yield, investors can make more informed decisions about which investments to make.

Educational Encyclopedia