Share Market Basics |
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What is Average ?Stock Market Terms, Definition, Share Market Glossary, Share Bazar TerminologyAverage Properly weighted and adjusted arithmetic mean of certain significant to represent general market behaviour, or a particular class of shares. The annualized return is a type of average used in finance. For example, if there are two years in which the return in the first year is -10% and the return in the second year is +60%, then the annualized return, R, can be obtained by solving the equation: (1 - 10%) × (1 + 60%) = (1 + R) × (1 + R). The value of R that makes this equation true is 20%. Note that changing the order to find the annualized returns of +60% and -10% gives the same result as the annualized returns of -10% and +60%.
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Famous Quotes on Stock Market and Trading “ Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.” -Warren Buffet.
"The problem with the person who thinks he’s a long-term investor and imperivous to short-term gyrations is that the emotion of fear and pain will eventually make him sell badly.” -Robert Wibbelsmen
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