How to calculate stock returns?
Just curious, how do you guys calculate your stock returns? Assume there is no tax. Which of the two methods below is the most accurate?
Basic info:
Purchase price: $10 * 1,000 shares = $10,000
Purchase fees: $10
Selling price: $15 * 1,000 shares = $15,000
Selling fees: $15
Method 1: [(15,000 - 15)/(10,000 + 10) - 1] = 49.70%
Method 2: [(15,000 - 15 - 10)/10000 - 1] = 49.75%
I mean I know it's not much of a difference, but still compounded with many different stocks it could make a very slight difference in the long run. Also, just want to get the facts right.
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