YIELD

in #business6 years ago (edited)

Is the percentage of the invested money(interest) that the business gives back to the investor in a period of time.

For example:
If you invested 1000$ in a business that generates 20$ of Net Income a year then the yield is 2%

(Net income * 100%) / Investment = Yield
(20$ * 100%) / 1000$ = 2%