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  2. PnL explained - Wikipedia

    en.wikipedia.org/wiki/PnL_Explained

    For example, the delta of an option is the value an option changes due to a $1 move in the underlying commodity or equity/stock. See Risk factor (finance) § Financial risks for the market . To calculate 'impact of prices' the formula is: Impact of prices = option delta × price move; so if the price moves $100 and the option's delta is 0.05% ...

  3. Product control - Wikipedia

    en.wikipedia.org/wiki/Product_control

    As a major deliverable, [1] [2] Product Control produces the daily profit and loss ("P&L") and balance sheet, which internal stakeholders (like the business, financial control, management reporting) all rely upon to assess the performance of the business; the business will need to approve the P&L. [1] (Such approval implies, i.a., that material ...

  4. Stock option expensing - Wikipedia

    en.wikipedia.org/wiki/Stock_option_expensing

    Stock option expensing is a method of accounting for the value of share options, distributed as incentives to employees within the profit and loss reporting of a listed business. On the income statement, balance sheet, and cash flow statement the loss from the exercise is accounted for by noting the difference between the market price (if one ...

  5. Mark-to-market accounting - Wikipedia

    en.wikipedia.org/wiki/Mark-to-market_accounting

    Simple example If an investor owns 10 shares of a stock purchased for $4 per share, and that stock now trades at $6, the "mark-to-market" value of the shares is equal to (10 shares * $6), or $60, whereas the book value might (depending on the accounting principles used) equal only $40.

  6. Return on investment - Wikipedia

    en.wikipedia.org/wiki/Return_on_investment

    For example, you invested $10,000 in stocks (initial investment) and paid $200 in brokerage fees (other expenses). After one year, the current value of your investment is $12,500, not yet sold. During the year, you received $300 in dividends (income from the investment). So, the ROI is the following:

  7. Rate of return - Wikipedia

    en.wikipedia.org/wiki/Rate_of_return

    In finance, return is a profit on an investment. [1] It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment over a specified time period, such as interest payments, coupons, cash dividends and stock dividends.