A share’s price change is only one part of the investor’s return. Dividends also contribute, and neither payment nor resale value is guaranteed. This lesson explains equity ownership, calculates total return and distinguishes price indices from total-return indices. Those distinctions matter when comparing portfolios and when defining the underlying of an option.
In this lesson
- Learning objectives
- Ownership and cash flows
- Indices and market exposure
- Include the dividend in total return
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