COMPUTING RETURNS
Once you sell your shareholding, you should compute the returns you have earned on your investment. To do so, you should take into consideration the sale value, your cost, dividends received and rights/bonuses.
Also take into consideration the time element of all your inflows and outflows and use the ‘Internal Rate of Return’ (IRR) formula (available in the MSExcel program) to compute your returns. IRR is the rate at which your cash outflows and inflows over different time periods are equal.
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