An investor bought 100 shares of Venus Corporation common stock one year ago for $40 per share.

Question:

An investor bought 100 shares of Venus one year ago for $40 per share. She just sold the shares for $44 each, and during the year, she received four quarterly checks for $40 each. She expects the price of the Venus shares to fall to about $38 over the next year. Calculate the investor’s realized percentage holding period return.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...