Return is the reward of making investment. If you buy a share of Rs 100 and get a dividend of Rs 12 at the end of the year, the return in rupee terms will be Rs 12. The percentage return will be:

12/100 = 0.12 or 12%

The percentage return in the form of dividend is also known as **dividend yield** which is simply the amount of dividend at the end of the year divided by the initial price of the share. In terms of an equation,

If you buy a share for Rs 100, the market price of share moves up to Rs 130 at the end of the year; the amount of increase is known as **capital gains**. Capital gain is also ...

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