A return of 7 percent is considered a good ROI for someone who invests in the stock or real estate markets, notes Joshua Kennon for About.com. A positive ROI range for bonds is anywhere from 2 to 4 percent.Know More
According to Kennon, dividend stocks that pay a 7 percent rate are safe and stable investments. Non-leveraged properties in the real estate market command the same 7 percent ROI, and inflation can add to an investor's ROI. For instance, 3 percent inflation means a person can yield a 10 percent ROI in the real estate and stock markets.
Investopedia adds that calculating the ROI is accomplished by dividing the return of the investment by the original cost. Calculating ROI is a good way to determine positive ROI or look for lucrative investments elsewhere. Kennon adds that riskier investments should come with higher gains, and the same principle applies to bonds.Learn more about Investing
Shorting a stock means selling borrowed shares with the goal of making money when the stock price declines. A short position is closed when the person buys to cover the borrowed shares, according to About.com.Full Answer >
The volatility of the stock market varies based on a monthly, weekly, or even daily basis. The stock market is volatile any time there is abundant selling of stocks and wide swingsin prices. High volatility, when points go up and down substantially on a day-to-day basis is abnormal, but the stock market itself can be volatile at any given time.Full Answer >
Stock options are employee benefits featuring set exercise prices at which employees can purchase shares of company stock within specified time frames, according to the U.S. Securities and Exchange Commission. Employees can profit by exercising their stock options when current market prices are higher than exercise prices.Full Answer >
According to Investopedia, preferred stock is called such because the stockholders receive preferential treatment when compared to common stockholders. This preferential treatment often includes guaranteed dividends not paid to common stockholders and first consideration for payouts of company assets to stockholders in case of bankruptcy.Full Answer >