Return

AAA

DEFINITION of 'Return'

The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.

INVESTOPEDIA EXPLAINS 'Return'

The general rule is that the more risk you take, the greater the potential for higher return - and loss.

Return is also used as an abbreviation for income tax return, see 1040 Form.

RELATED TERMS
  1. Asset Accumulation

    The increase in the value of financial property and investments ...
  2. Substitute Return

    A tax filing that the IRS will create for a taxpayer in order ...
  3. Compound Return

    The rate of return, usually expressed as a percentage, that represents ...
  4. Average Return

    The simple mathematical average of a series of returns generated ...
  5. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  6. Rolling Returns

    The annualized average return for a period ending with the listed ...
RELATED FAQS
  1. Is variance good or bad for stock investors?

    Variance is neither good nor bad for investors in and of itself. However, high variance in a stock is associated with higher ... Read Full Answer >>
  2. What is the formula for calculating opportunity cost?

    When assessing the potential profitability of various investments, businesses look for the option that is likely to yield ... Read Full Answer >>
  3. What is the doctor advisory scam?

    U.S. securities law provides certain exemptions that allow privately owned companies to issue shares of unregistered stock ... Read Full Answer >>
  4. Why do low interest rates cause investors to shy away from the bond market?

    The lower rates that are found on bonds, especially government-backed bonds, are often not seen as enough by investors. This ... Read Full Answer >>
  5. What is the difference between yield and return?

    Because investors are very concerned with how well their investments are performing or how they are expected to perform, ... Read Full Answer >>
  6. Which states are the most expensive for high-income earners?

    The most expensive states for high-income earners are California, Hawaii and New York. The tax rates assessed by these states ... Read Full Answer >>
Related Articles
  1. Fundamental Analysis

    How To Calculate Your Investment Return

    How much are your investments actually returning? Find out why the method of calculation matters.
  2. Active Trading Fundamentals

    Charting Your Way To Better Returns

    Learn about the powerful hybrid techniques that take advantage of both technical and fundamental analysis.
  3. Investing Basics

    Determining Risk And The Risk Pyramid

    Many investors do not understand how to determine the risk level their individual portfolios should bear.
  4. Fundamental Analysis

    Find The Right Fit With Probability Distributions

    Discover a few of the most popular probability distributions and how to calculate them.
  5. Mutual Funds & ETFs

    Published Mutual Fund Returns Not Always What They Appear

    Survivorship bias erases substandard performers, distorting overall mutual fund returns.
  6. Taxes

    Explaining Progressive Tax

    A progressive tax is a levy in a tax system where the tax rate increases as the taxable base increases.
  7. Taxes

    Understanding Income Tax

    Income tax is a levy many governments place on revenue of entities within their jurisdiction.
  8. Economics

    What is a Tax Liability?

    Tax liability is the amount of money a person or entity owes to the government as the result of a taxable event.
  9. Taxes

    Top 4 Ways to Invest Tax Free

    When you're ready to invest, start by looking at these 4 tax-advantaged ways to build your portfolio and your future.
  10. Taxes

    Missed The Tax Return Deadline? Here's What To Do

    Most important: Do it now.

You May Also Like

Hot Definitions
  1. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  2. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  3. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  6. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
Trading Center