When a company calculates its earnings over a certain period of time, it divides its profits by the number of outstanding shares. However, companies' outstanding shares can change over time as a ...

If you bought all of your stock in a single transaction, it's easy to determine how your investment is performing. Simply look at the current share price and compare it to the price you paid. However, ...

Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

In its most basic form, the objective of tracking performance is to see whether your portfolio is growing. However, portfolio performance should also provide insight into the performance of the ...

If you bought a different number of shares with each trade, a simple average of the prices won't be accurate. If you've bought a certain stock over a series of transactions, then it can be useful to ...

This post explains how to calculate Weighted Average in Excel with percentages. In a standard arithmetic average where the sum of values is divided by the number of values, each data value is treated ...

Dollar-weighted returns consider timing and size of cash flows in your portfolio. Use dollar-weighted return to measure how effective your money worked in your investments. Start by adjusting account ...

Katharine Beer is a writer, editor, and archivist based in New York. She has a broad range of experience in research and writing, having covered subjects as diverse as the history of New York City's ...