if my stock goes up how much do i make

by Telly Upton II Published 3 years ago Updated 2 years ago

If a stock goes up 100 percent, it's doubled in value. That's also reflected in the relative increase in your two investments. Your 200 shares of the first stock each increased by $5, giving you a 200 * $5 = $1,000 gain, while your 100 shares of the second stock each increased by $8, giving you a 100 * $8 = $800 gain.

If a stock goes up 100 percent, it's doubled in value. That's also reflected in the relative increase in your two investments. Your 200 shares of the first stock each increased by $5, giving you a 200 * $5 = $1,000 gain, while your 100 shares of the second stock each increased by $8, giving you a 100 * $8 = $800 gain.Apr 25, 2019

Full Answer

What makes a stock go up in price?

Owning stock does not allow you any control over what the company does or how it treats its customers. Increased Percent of Profits: I get to keep 100% of the profits. While stock owners can raise a fuss about not getting dividends, it's totally up to the company's board of directors as to whether or not they decide to share profits with stockholders.

How can I see how much a stock has gone up?

Unless the stock tells you otherwise, you're best off taking at least some of your chips off the table when the stock rises 20% or 25%. Taking some — or all — of your profit in that zone is …

What will I pay in taxes when I Sell my stocks?

When the price of a stock you own goes up you have what you call an unrealized gain. This is a gain that you have yet to lock in so it can still change. Once you sell the stock, then you have a realized gain. This means you have locked in your profits.

How to calculate the cost of investing in stocks?

Apr 25, 2019 · If a stock goes up 100 percent, it's doubled in value. That's also reflected in the relative increase in your two investments. Your 200 shares of …

Do you make money when stocks go up?

The more time you're invested in the market, the more opportunity there is for your investments to go up. The best companies tend to increase their profits over time, and investors reward these greater earnings with a higher stock price. That higher price translates into a return for investors who own the stock.

How do you calculate how much you will make on a stock?

To calculate your profit or loss, subtract the current price from the original price. The percentage change takes the result from above, divides it by the original purchase price, and multiplies that by 100.

How much should I expect to earn from stocks?

The average stock market return is about 10% per year for nearly the last century. The S&P 500 is often considered the benchmark measure for annual stock market returns. Though 10% is the average stock market return, returns in any year are far from average.Mar 2, 2022

How do you profit from stocks?

This is the classic strategy, "buy low, sell high." Short-selling—This strategy is a reverse of the classic one above; it might be dubbed "sell high, buy low." When you sell short, you borrow shares of stock (usually from a broker), sell them on the open market, and then buy them back later—if and when the price drops.

What happens if you invest $1 in a stock?

The initial investments you made would grow exponentially if you left the money alone. That $1 you invested on day one would eventually turn into $17.45 of value on its own -- and it would do that because as the $1 earned a return, the money would be reinvested and earn more returns, and so on over time.Aug 18, 2021

How many shares should a beginner buy?

Most experts tell beginners that if you're going to invest in individual stocks, you should ultimately try to have at least 10 to 15 different stocks in your portfolio to properly diversify your holdings.Apr 7, 2022

How much money do I need to invest to make $1000 a month?

Assuming a deduction rate of 5%, savings of $240,000 would be required to pull out $1,000 per month: $240,000 savings x 5% = $12,000 per year or $1,000 per month.Apr 12, 2022

How much money do I need to invest to make $500 a month?

To make $500 a month in dividends you'll need to invest between $171,429 and $240,000, with an average portfolio of $200,000. The actual amount of money you'll need to invest in creating a $500 per month in dividends portfolio depends on the dividend yield of the stocks you buy.

Can you make a living off stocks?

Trading is often viewed as a high barrier-to-entry profession, but as long as you have both ambition and patience, you can trade for a living (even with little to no money). Trading can become a full-time career opportunity, a part-time opportunity, or just a way to generate supplemental income.

How do beginners invest?

Here are six investments that are well-suited for beginner investors.

401(k) or employer retirement plan.
A robo-advisor.
Target-date mutual fund.
Index funds.
Exchange-traded funds (ETFs)
Investment apps.

How much can you make a month from stocks?

The short answer to the question of, “how much can you make from stocks in a month?” is there is no max. You could make an infinite amount, theoretically. But you also could lose 100% of your investment as well, so it really is a risk reward situation.Jul 10, 2021

Can you make money with one share?

Getting rich off one company's stock is certainly possible, but doing so with just one share of a stock is much less likely. It isn't impossible, but you must consider the percentage gains that would be necessary to get rich off such a small investment.

Percentage Change in Stock Price

It's sometimes more useful to look at a percentage change in a stock price than to look at how much the stock changed in price purely in dollars per share.

A Concrete Example

Imagine that you had invested $1,000 in a stock valued at $5 per share and another $1,000 in a stock valued at $10 per share. This would give you 200 shares of the first stock and 100 shares of the second stock.

Dealing with Stock Splits

Any time you're comparing the prices of a stock at two separate times, you need to make sure that you're comparing the same stake in the company. Stocks sometimes undergo stock splits, where they replace each share of the stock with a greater number of new shares in the compan y.

It's important for investors to understand what drives stocks and the market up and down

Tim writes about technology and consumer goods stocks for The Motley Fool. He's a value investor at heart, doing his best to avoid hyped-up nonsense. Follow him on Twitter: Follow @TMFBargainBin

What can affect stock prices?

High demand for a stock relative to supply drives the stock price higher, but what causes that high demand in the first place?

The big picture is what matters

Long-term investors, like those of us at The Motley Fool, don't much care about the short-term developments that push stock prices up and down each trading day. When you have many years or even decades to let your money grow, things such as analyst upgrades and earnings beats are irrelevant.

Why are there so many factors involved?

First, there are two different ways your stock gains may be taxed. Capital gains taxes apply when you sell a stock or other assets, and they are generally lower than your regular tax rate. You owe capital gains taxes when you sell a stock holding for more than you paid for it, and they are based on the amount you earned on that sale.

How do I figure out how much capital gains tax I owe?

If you sell a stock or other investment asset for a profit, you will owe capital gains tax. But the amount you owe depends on several factors.

How do I calculate capital gains tax?

When you sell a stock at a profit, you probably do owe capital gains tax, but not on the full amount of the sale. You’re only required to pay taxes on your profit, so that means you can subtract the amount you paid for the stock when you originally bought it.

Can I do anything to lower my capital gains taxes?

Aside from deducting the management fees or commissions you paid to brokers, you can also potentially lower capital gains tax liability by offsetting your gains with losses.

Benefits and Disadvantages

There are benefits to shareholders when a company is bought out. When the company is bought, it usually has an increase in its share price. An investor can sell shares on the stock exchange for the current market price at any time.

Cash or Stock Mergers

Public companies can be acquired in several ways; cash, stock-for-stock mergers, or a combination of cash and stock.

Stock FAQs