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CAGR
Growth Rate
Capital Gains
Paper Profit

Return on Investment (ROI)
Term category: Finance/Accounting
In 10 words or less: The rate of return you earn on a particular investment.

Definition: A profit or loss from an investment. This can refer to individuals or companies. The general formula is as follows

          Profit/Investment = Return on Investment

So for example, if you invested $1000 in a project and it paid you back your original $1000 and $200 extra, your return on investment would be 20%.

StockJargon Advice: Investors are always seeking out investments that offer the greatest return.  However, it's important to understand that higher returns come with higher risks.

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