What is ROI – Return on Investment?
ROI, return on investment, is also sometimes called rate of return (ROR) or just simply return. It is a term used to describe how much money a investor gains or loses in a ratio to how much money they invest in a company. While this sounds complex, it is really just a matter of percentages. If you have invested $100 into a company, and you earn $5 from that investment this is considered a 5% ROI. This information can be useful when determining how much to invest into a company or other investment opportunity.