To calculate the profitability of these stocks, one can follow the following process:
Annual profit = Investment incomes x 365 x 100
In this case, the incomes the investment has provided are:
Dividends 2,000 m.u.
Subscription rights 4,000 m.u.
Surplus (215,000 – 300,000) 15,000 m.u.
Investment incomes 21,000 m.u.
As the investment has been 200,000 monetary units and the investment term 91 days, the annual profit is:
Profit = 21,000 x 365 100 = 42,11%
Thus, the investment annual profit of stocks is 42.11%. One should deduct taxes the investor has to pay for received incomes from the profit and add the fiscal deductibles obtained thanks to the investment, if any.
On the previous example, reality has been simplified by supposing that all incomes have occurred at the end of the period taken into account. if the stock investment has had more than a year long-term, one will have to use the internal profitability rate to estimate the average annual profit.
In the stock market, quoted stocks are divided into groups based on the companies main activity. The basic groups are usually the following:
- Electric and gas
- Cement and construction
- Commerce and finances
- Real estate investment society – new technologies
- Real estate
- Metallurgic and automotive
- Textiles and papers
- Varied services