How Do I Understand Profit and Total Returns on US Stocks?

That “Total Return” is your PROFIT (or loss).

Yes.

Simple as that.

Let Me Explain With a Simple Story

Mama Ngozi buys tomatoes for ₦10,000.

After one week, the tomatoes are now worth ₦11,500.

What is her gain?

₦11,500 – ₦10,000 = ₦1,500 profit

That ₦1,500 is her return

Oya… Relax Let Me Explain

What “Total Return” Means

When your app shows:

• +$1.50
• +$3.70
• +$4.17

It means:

👉 That is how much profit you have made on each stock

Example Breakdown

Stock A

You invested maybe:

• $50

Now it is worth:

• $51.50

👉 Total return = +$1.50

Stock B

You invested:

• $100

Now:

• $103.70

👉 Return = +$3.70

Stock C

You invested:

• $80

Now:

• $84.17

👉 Return = +$4.17

Important Thing You Must Know

This return comes from:

1. Price Increase

If the stock price goes up:

✓ your return increases

2. Dividends (if any)

If the company pays dividend:

✓ it adds to your return

Let Me Be Honest With You

That number is:

✓ not yet your money in hand

Why?

Because:

👉 You have NOT sold the stock yet

So It Is Called:

✓ Unrealized profit

When Does It Become Real Money?

Only when you:

👉 SELL the stock

Simple Truth

• Before selling → profit on screen
• After selling → profit in your pocket

Final Truth

Those numbers you are seeing mean:

👉 Your investment is currently growing

Let Me Leave You With This

Don’t rush to sell just because you see small profit.

Ask yourself:

• Am I investing long-term?
• Do I believe in this company?

Because real wealth is not built from:

✓ small quick gains

But from:

✓ patience and growth over time

 

Rose Ejituru

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