Negative return (finance) in the context of "Return (finance)"

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⭐ Core Definition: Negative return (finance)

In business and finance, a negative return is a situation in which an investment yields a loss—that is, when the net profit falls below the original capital invested. By extension the term is also applied to projects or initiatives deemed unproductive or not worthwhile, even when evaluated outside strictly economic criteria.

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👉 Negative return (finance) in the context of Return (finance)

In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment over a specified time period, such as interest payments, coupons, cash dividends and stock dividends. It may be measured either in absolute terms (e.g., dollars) or as a percentage of the amount invested. The latter is also called the holding period return.

A loss instead of a profit is described as a negative return, assuming the amount invested is greater than zero.

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