Return on investment
I'm looking for an ROI of at least 10%. Do you think you can provide that?
|EBT||Earnings before taxes|
|ISO||Incentive stock option|
|NSO||Non-qualified stock option|
|NQSO||Non-qualified stock option|
|CEO||Chief executive officer|
|CFO||Chief financial officer|
|EPS||Earnings per share|
|Retail investor||Individual, non-professional investor|
ROI, or return on investment, is a measure of how profitable an investment was. To calculate ROI, investors divide their profits by their initial investment amount, to produce an ROI percentage.
For example, if you invested $10,000 in your friend's brewery, and you received $12,000 in return, your ROI would be calculated as follows:
$2,000 in profit / $10,000 initial investment x 100 = 20%
Which is pretty good! It certainly beats banks' interest rates ...