Using a Stock Market Investment Calculator

stock market investment calculator

We spend hours browsing and looking at the Internet only to come across various products which do not seem to suit our requirements. This is when the best thing to do is use a stock market investment calculator. They will give us an idea as to what the return on investment would be and even help us in choosing the stock which would be most beneficial for us. There are many different types of these calculators that are easily available.

Dow Jones Industrial Averages

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One such type of calculator is the Dow Jones Industrial Averages. It gives us the value of the Dow Jones Industrial Average, which is a very important index in the stock market. Looking into the details, we find that it is based on the actual values of all the stocks that have been listed on the Dow Jones. From this information, the index is calculated. From this, we get the numbers that we need.

Exponential Moving Averages

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The other type of tool which we find useful is one which is called the exponential moving averages. This calculator gives us the time series results of the Dow Jones Industrial Average. The time period can be calculated by us and we get the value at any particular date. Using this data, we can calculate with great precision the movement of the stock market. We are thus able to determine the value of the market in terms of trends. Dow Jones itself was formed by Dow Jones & Co., a company that started in Omaha in July 1924. Dow Jones evolved as a company which specialized in publishing financial periodicals which help people invest in the stock market. This eventually led to the formation of Dow Jones and the creation of the Dow Jones Industrial Average.

Stocks And Stock Portals

Another popular calculator is the Stocks and Stock Portals. This is a free online stock market investment calculator that helps people to invest money in different stocks of their choice. It can be used to do mathematical computations for future predictions and it also works out the results in terms of the changes in the stock market price. This assists people to plan and make investments accordingly. The users are able to input their inputs into this application in the form of parameters.

The Stocks and Portals operate on the basic principle of supply and demand theory. The principle says that the stock price should increase or decrease depending upon how much people want to invest in it. The maximum value can be achieved when you can purchase the least number of shares and the minimum value when you can sell all your stocks.

It uses the concept of the average rate of return to calculate the value of the stock. The average rate of return is the average annual profit earned by the company during the past ten years. To calculate the value of the stock, the calculator divides the number of profits made by the company per year by the number of years it has been in business. This will give the result as the value of the company per year ends.

Wrapping Up

There are different types of stock market calculators for different needs. One of them is the dividend calculator which can help you to calculate the annual return of the company. This can be used by students who want to know more about it before investing their money in it. Another type of stock market tool is the multiple time earnings calculator. This is very useful for people who earn frequent cash flow from their investments and for people who have an eye on future dividends.

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