Lesson 4: How to Calculate Gain on Stock

Learn how to calculate gain on the sale of stock.

[iggidybabii]

Thank you this is basically what everybody needs but they skip this part

[dretchlord]

The video is really on how much profit you made on a transaction, in here that's $486 profit or $4.86 per share. Which is okay if that's why you need but most platforms instead show the percentage gain or loss.
So just to add a little bit:
1. divide amount of change/buy price
amount of change - just subtract the sell price from buy price; so what you computed $486
buy price - you bought the 100 shares at $1507
2. 486/1507 = 0.3225
3. Multiply by 100 to get the percentage = 32.25%
4. Determine if it's a gain or loss;
this is easy and all you have to do is check whether your amount of change is a positive or negative number. In the video, when you sold the 100 shares at $1507 it was a lot higher than when you bought so when calculating amount of change, the result is a positive number.
5. Answer = 32.5%gain aka 32.5%realized gain (which is what is usually displayed in your stock platforms)


So when you are given percentage gain for a transaction and you want to know your gain/loss in terms of money, you just have to convert the percentage into a decimal then multiply it to the price you paid when you bought the stock
1. (buy)1507 X .3225= 486$


And if your stock portfolio is represented in percentage gain/loss, this is all your stocks that you did in your lifetime, they would usually get the estimate of all your stocks gain/loss and from that you can pretty much guess how your portfolio is doing


When I started: $10, 000 in my account
percentage gain/loss of portfolio estimated: -10%
So current value of account: $9, 000


Of course you don't really need to compute CURRENT VALUE since you literally just need to look at your wallet and if it's lesser than what you originally had then obviously you lost in value.


However, it is not the value of your wallet atm that is relevant but rather the performance of your stock portfolio that counts. So the percentage gain/loss for your portfolio is already computed for you and it's okay to have a negative performance so long as the number is not too high. My opinion, 10% loss is about mid-range and it kinda tells me that you somewhat know what your doing in the stock market.
PS: your performance is not limited only to the estimated change, there are a lot of other stuff too.

[MrPushupp]

WE WANTED THE % GAIN YA NUT! lol thanks for taking the time tho

[oguonyebuchi]

So how did you came up with the 7% commission?

[avinashsingh]

I have 100 equity shares @ RS 10 of JSW steel .
Nd mrkt rate is between 330 to 349.... If I sell that what would be my profit..
Would it be 1000 shares * rate 340 (assume)=Rs 349000

[wowza]

What is the percentage that it went up?

[kellykelly]

Thanks for the video!! can I ask what platforms is good to start using for beginners ??

[thearchereverything]

Sorry to nitpick here but that takes in 2 variables of gross loss and commission which there is many more that impact the true profit sadly

[amiraqistina]

hi what does the commission refers to?issit the gain or loss of the stock?

[tmontaf]

This is not helpful - most stock information is by % - what % of gain/loss. Not necessarily the $$ amount.

[lakay]

Is that 1500 each share?? or 1500 for the whole 100 shares??

[mandeepkumar]

Meanwhile i got profit of 5rs on 500 rs one share. How much money i got?
Is it 2500 rs..

[xOfficialSlugger]

Good video but not what I'm looking for..

[MichaelnMoreno]

You do realize it should of been 2007 -1507 right? Furthermore it's helpful to convert this to percentages.