Glossary

Return on Investment (ROI)

DEFINITION

Return on Investment, or ROI, is a common measure used to judge how efficient or profitable an investment is. It shows the gain or loss from an investment compared with the amount originally invested.

ELI5

ROI tells you how well your money did after you invested it. It compares what you gained or lost with what you put in.

Other related terms

Compounding Interest

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Ponzi Scheme

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Index Fund

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Fixed Income Fund

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