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Financial Terms related to Yield
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glossary with more than five thousand financial
and business terms.
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Yield
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
YIELD
Annual percentage yield
• Abbreviated APY.
The effective, or true, annual rate of return.
The APY is the rate
actually earned or paid in one year, taking into account the affect of compounding.
The APY is calculated by taking one plus the periodic rate and raising it to the
number of periods in a year.
For example, a 1% per month rate has an APY of
12.
68% (1.
01^12).
Average dividend yield
• Combined with price appreciation, the average dividend yield (if any) can show a
potential total return from a security investment.
The formula for
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