Definition of Yield
What is Yield
Yield is the measure of the rate of return on an investment, usually expressed as a percentage of the amount invested. Yield is the amount of income or profit generated by an investment over a specific period of time, often annually.
Calculating Yield
The yield on an investment can be calculated in different ways depending on the type of investment. For example, the yield on a bond is calculated as the interest rate paid on the bond divided by the price of the bond. The yield on a stock is calculated as the dividends paid by the stock over the course of a year divided by the price of the stock.
Importance of Yield
Yield is an important factor to consider when making investment decisions, as it can provide a measure of the investment's potential return. However, yield should not be the only factor considered, as it may not take into account other factors such as risk, liquidity and tax implications.
Types of Yield
Different types of yield may also be used to evaluate investments. For example, current yield measures the annual income generated by an investment relative to its current market price, while a yield to maturity measures the total return an investor can expect to earn if they hold the investment until maturity.
Overall, yield is an important metric to consider when evaluating investment opportunities, but it should be considered in conjunction with other factors such as risk, liquidity and diversification.
GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts
The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.
A financial dictionary can be useful for anyone who wants to learn more about finance and investing, or who works in the financial industry. It can help clarify the meaning of technical terms and the language used in financial publications, reports and other sources.
Benefits of the GlobEx Markets Financial Dictionary
There are several benefits to using the GlobEx Markets financial dictionary, including:
- Clarifying Technical Terminology: The financial world is filled with complex terms and language that can be confusing to those who are not familiar with it. A financial dictionary can help clarify the meaning of technical terms and make them more understandable.
- Improving Financial Literacy: By learning the meaning of financial terms, phrases and concepts, you can improve your overall financial literacy and gain a better understanding of the workings of the financial world.
- Enhancing Communication: A financial dictionary can help improve communication among financial professionals by ensuring that everyone is using the same terminology, phrases and concepts.
- Supporting Research: When conducting financial research or analysis, a financial dictionary can be a valuable resource for identifying and understanding key terms, phrases and concepts.
- Facilitating Decision-Making: Understanding financial terms, phrases and concepts can help you make better-informed financial decisions, whether you are managing your own finances or making decisions on behalf of an organization.
Overall, the GlobEx Markets financial dictionary can help improve your understanding of international finance and global investing. It is a valuable tool for anyone who works in the financial industry or who wants to improve their financial literacy.
Related Investment Terms
Dividend
Interest Rate Risk
Rate of Return
