Yield is the net profit that the stock investor earns from a stock.

Consider the yield on “Google” (ticker: GOOG) from January 2, 2008 to December 30, 2008 was 115.2%.

This indicates that the investor who was having Google shares during that period has acquired more than 100% on his original investment to buy the shares.

Profit is obtained from two main happenings in stock trading:

• Due to the increase in the stock price.
• Due to the dividends distributed to shareholders of the company (we can look in to it in detail in the later part of the course).