For Rate Of Return we have terms and definitions in 8 topics. The topics are Accounting, Business, Energy, Finance, Frauds and Scams, International Economics, Investing and Natural Gas.

Rate Of Return (Accounting)

is the gain or loss for a security in a particular periodconsisting of income plus capital gains relative to investmentusually quoted as a percentage. The real rate of return is the annual return realized on that investmentadjusted for changes in the price due to inflation.

Rate Of Return (Business)

An accounting ratio of the income from investment to the amount of investment, used to measure financial performance.

Rate Of Return (Energy)

The ratio of net operating income earned by a utility is calculated as a percentage of its rate base.

Rate Of Return (Finance)

Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return.

Rate Of Return (Frauds and Scams)

1) In common stock, the rate of return equals its dividend yield--calculated by dividing the annual dividend by the original purchase price. Rate of return may also refer to the total return, which is capital appreciation plus the dividend. 2) In fixed-income securities such as bonds and preferred stock, the rate of return equals the current yield, which is the coupon or dividend rate divided by the original purchase price.

Rate Of Return (International Economics)

The percentage of an asset's value that the owner of the asset earns, usually per year.

Rate Of Return (Investing)

1: In common stock, the rate of return equals its dividend yield--calculated by dividing the annual dividend by the original purchase price. Rate of return may also refer to the total return, which is capital appreciation plus the dividend.
2: In fixed-income securities such as bonds and preferred stock, the rate of return equals the current yield, which is the coupon or dividend rate divided by the original purchase price.

See Also: Real Rate Of Return; Required Rate Of Return; Total Return; Yield; Yield To Call; Yield To Maturity

Rate Of Return (Natural Gas)

The return allowed to be earned (generally based on a cost of capital determination) or earned by a utility enterprise, generally calculated by dividing the net operating income (as defined) by the rate base.

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