WHEN YOU BUY SHARES, WHEN DO YOU EARN YOUR PROFIT? IS IT AT THE END OF THE FISCAL YEAR OR ONE YEAR AFTER BUY?

When we deposit upon the stockmarket, when do we get your eranings per share?

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{ 11 comments }

italian_gurl August 16, 2011 at 11:44 pm

http://answers.yahoo.com/question/index?qid=20071203114835AAFwqbV&pa=FYd1D2bwHTHwLbxhFes4QADUe9lregPXuIaXCgJGO7.vrA–&paid=asked&msgr_status=

stocks are confusing

kja63 August 16, 2011 at 11:53 pm

Earnings (or loss) on stocks are calculated when you sell them.

Jammer August 17, 2011 at 12:29 am

You don’t get any earnings per share. You only make money if the company pays a dividend (usually annually), or you sell your stock at a profit. You should hold a stock for at least a year to avoid the tax penalty.

Matt K August 17, 2011 at 1:11 am

As soon as you sell the stocks, you have either a realized profit or loss

chiles007 August 17, 2011 at 1:16 am

well you don’t really get anything….earnings per share is just a measure of how well the company is doing. you will get some return on your investment if and when the company pays out dividends, which can be anytime. you can also get a return on your investment if you sell the share at a higher price than you bought it.

TedEx August 17, 2011 at 1:57 am

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nihongome August 17, 2011 at 2:28 am

You buy shares of technical “ownership” in the company. That ownership value fluctuates with the price of the company value. You make most of the profit by buying one day for a low price and then waiting until the company value rises and you sell your share of the ownership for a high price. However, when you have shares and hold on to them, you receive small dividends at the end of every fiscal year based on how many shares you own.Could also be every fiscal quarter depending ont he company you invested in.

braz50 August 17, 2011 at 2:53 am

You don’t REALIZE any profit until 1) dividends, if any, are paid and/or 2) you sell the shares, realizing (if the stock has increased in value) a “capital gain”.

Otherwise, the appreciation (or, if you are unfortunate, depreciation) of the shares is purely a “paper [i.e., non-cash] profit”, which can be calculated, if the annual return is desired, one year after the date of purchase.

nice but dirty August 17, 2011 at 3:49 am

when you sell! you may receive dividends

zipper August 17, 2011 at 4:36 am

If you mean your div-id end when the company declare one, that could be a week to a full year away. This is interest not profit. You make a profit only when you sell off your stock for more than you paid for it: again this depends on timing. You could also realize a lost. The safest investment for you mite be US Savings Bonds, with them you all ways realize a profit after six months when you cash out, I think I am wrong here,I believe cash out can not be done until the bonds are a year old now. Ask your local bank, they will know if it is 6months or a year. That is also were you cash them.

Adam J August 17, 2011 at 5:33 am

Either:

1) When the company pays out a dividend (ie a share of profits) to its investors. This is generally done quarterly, though not always–the money is distributed when the management feels like distributing it.
2) When you sell the shares to someone else for more than you paid for them.

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