What Is Yield: Definition, Formula and Calculation

If you plan to trade stocks, you should be able to calculate your profit, i.e. yield value. In this ultimate guide for beginners, we overview the definition of yield, its formula and ways of calculation, and many other crucial aspects.

What Is a Yield?

Yield is one of the main indicators of stock investments, by which one can assess their profitability, feasibility and compare them with each other. Often, to assess the profitability of investing money, the risk-return ratio is used. The reason is simple: indicators such as profitability and risk themselves are not very informative. 

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