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Canadian stock investors pay close attention to their returns. Find out what’s included in stock market returns and what “nominal return” means.
A stock market return is the positive or negative change in value of an investment or asset over time. A positive return means a profit has been made on the investment. A negative return means that there has been a loss on the investment. Total stock market returns include dividends and interest payments, as well as the price change in the stock. The change in stock price alone is referred to as a nominal return.
Example: “Dividends drive much of the stock market returns.”
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