Every investor wants to earn money on their investments. FINRA explains:
"Investment return is the money you make or lose on an investment.
Ideally, your return will be positive: your initial investment or
principal will remain intact, and you'll end up with more money than you
"Total return is a measure of your profit or capital appreciation before taxes and commissions or fees."
Rate of return = Total return ÷ Investment amount.
The other factor you have to take into account in evaluating your return
is the number of years you own the investment. There's a big difference
in realizing a return of 16.67 percent on an investment you own for
just one year, or what's called an annual return, and realizing the same
return on an investment you own for five years. Your annualized return
over a five-year period is only 3.13 percent." For more info: