1. What is Stock Gains Calculation?

Stock gains calculation determines the profit or loss from an investment by comparing the current value of stocks to their original purchase price. It's a fundamental measure of investment performance.

2. How Does the Calculator Work?

The calculator uses the simple gains formula:

Where:

• \( Current\ Value \) — Present market value of your stocks
• \( Purchase\ Value \) — Original cost of purchasing the stocks

Explanation: Positive results indicate profit, negative results indicate loss.

3. Importance of Calculating Gains

Details: Tracking gains helps investors assess performance, make informed decisions about holding or selling, and calculate tax liabilities.

4. Using the Calculator

Tips: Enter both values in the same currency. Use accurate current market prices for precise calculations.

5. Frequently Asked Questions (FAQ)

Q1: Does this include dividends?
A: No, this calculates only capital gains. Dividend income should be calculated separately.

Q2: How do I account for multiple purchases?
A: You'll need to calculate average purchase price or use specific identification method.

Q3: Should I include transaction fees?
A: For precise calculations, yes. Add fees to purchase value and subtract selling fees from current value.

Q4: What about currency fluctuations?
A: For foreign investments, convert both values to your home currency using current exchange rates.

Q5: How is this different from ROI?
A: Gains show absolute profit/loss, while ROI (Return on Investment) shows percentage return relative to initial investment.