What is profit?Profit
Sale proceeds − purchase cost − fees: the money you actually pocket.
Learn “profit” in an animated lesson
- Stock BasicsWhat Is Buying?
Buying means swapping cash for shares. Your cash goes down and your shares go up, but at the moment you buy, your total assets don't change.
- Stock BasicsWhat Is Profit?
Sale proceeds minus purchase cost, minus fees: what's left is the profit that actually lands in your pocket.
- Stock BasicsWhat Is Selling?
Selling means turning the shares you hold back into cash. In a regular account you can only sell shares you already own.
Related terms
See how “profit” works for yourself with an animation you can drag and play.
Go to “What Is Buying?”