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Calculate Stock Percentage Increase

Stock Percentage Increase Formula:

\[ SPI = \frac{(CP - OP)}{OP} \times 100 \]

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1. What is Stock Percentage Increase?

Stock Percentage Increase (SPI) measures the percentage growth in a stock's price from its original purchase price to its current market price. It helps investors evaluate the performance of their investments.

2. How Does the Calculator Work?

The calculator uses the SPI formula:

\[ SPI = \frac{(CP - OP)}{OP} \times 100 \]

Where:

Explanation: The formula calculates the percentage difference between the current price and the original purchase price, showing the investment's growth rate.

3. Importance of SPI Calculation

Details: SPI is crucial for investors to assess investment performance, make informed decisions about holding or selling stocks, and compare different investment opportunities.

4. Using the Calculator

Tips: Enter current price and original price in dollars. Both values must be positive numbers to calculate the percentage increase.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative SPI indicate?
A: A negative SPI indicates a percentage decrease in stock value, meaning the current price is lower than the original purchase price.

Q2: How often should I calculate SPI?
A: Regular monitoring (weekly, monthly, or quarterly) helps track investment performance, but avoid overreacting to short-term fluctuations.

Q3: Does SPI account for dividends?
A: No, SPI only measures price appreciation. Total return calculations should include dividends for a complete performance picture.

Q4: Can SPI be used for other investments?
A: Yes, the SPI formula can be applied to any asset with a purchase price and current market value, including real estate and commodities.

Q5: What's considered a good SPI?
A: A "good" SPI depends on market conditions, investment timeframe, and individual goals. Generally, positive SPI that outperforms market benchmarks is desirable.

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