ROI | How much money have I made (or lost) on this stock compared to what I put in?
ROI stands for Return on Investment. In the simplest terms, it is a measure used to evaluate the efficiency or profitability of an investment. It calculates the percentage of profit or loss you have made on a particular investment relative to its cost. In the Indian stock market, ROI helps you answer the fundamental question: "How much money have I made (or lost) on this stock compared to what I put in?" The Basic Formula While the concept is simple, ROI can be calculated in a few ways depending on what you want to measure. The most basic formula is: ���=Final Value of Investment−Initial Value of InvestmentInitial Value of Investment×100ROI=Initial Value of InvestmentFinal Value of Investment−Initial Value of Investment×100 Example: You buy 10 shares of Reliance Industries at ₹2,500 each. Your Initial Investment = ₹25,000. One year later, you sell those 10 shares at ₹3,000 each. Your Final Value = ₹30,000. ROI = (30,000 - 25,000)…