1. What is Stock Gain Calculation?

The stock gain calculation determines the profit or loss from an investment by comparing the current value of shares to their original purchase price.

2. How Does the Calculator Work?

The calculator uses the gain formula:

Where:

• \( Current\ Price \) — Current market price per share ($)
• \( Purchase\ Price \) — Original purchase price per share ($)
• \( Shares \) — Number of shares owned

Explanation: The formula calculates the difference between the current value of your investment and what you originally paid for it.

3. Importance of Gain Calculation

Details: Calculating gain helps investors track performance, make informed decisions about holding or selling, and understand tax implications.

4. Using the Calculator

Tips: Enter current price per share, purchase price per share, and number of shares. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: What if the result is negative?
A: A negative result indicates a loss on the investment.

Q3: Should I include fees in the calculation?
A: For precise calculations, you may want to include brokerage fees in your purchase price.

Q4: How often should I calculate my gains?
A: It depends on your investment strategy, but many investors track gains quarterly or when making decisions.

Q5: Is this the same as realized gain?
A: No, this shows unrealized gain. Realized gain occurs only when you actually sell the shares.