If you were to buy $1000 dollars worth of shares, and the worth went up 60% and you sold, would you earn $600 or $1600? When you sell, do you keep your original capital, ($1000)?


would you earn $600 or $1600?

You would have $1600, and your earnings would be $600.

That's the only answer it could be, since if you start with $1000 from your savings, then it's impossible for you to have also earned that money in the stock market.

When you sell, do you keep your original capital, ($1000)?

If you own a car which you bought for $1000, and then sell it for $1600, do you keep the original $1000?

  • "earnings" doesn't seem like the right word here, because it has a specific meaning in finance and tax consequences. "gain" is a word often used with stocks, and "profit" or "income" could fit as well. – Ben Voigt Oct 4 '17 at 4:14
  • Thank for the help. I'm relatively new to investing, and I've been trying to look around for help everywhere I can. – Sky Oct 4 '17 at 10:04

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