Glossary · from the DESK dictionary
Return on Investment (ROI)
A basic metric measuring the gain or loss of an investment relative to the original cost of the investment.
In plain words
Used across practically every type of investment, from individual securities to entire business projects.
What it means for traders
A fundamental, universally applicable practical concept throughout finance.
Common pitfalls
In its simple form, accounts for neither the time value of money nor the risk taken.
Related terms
Rate of Return · Return
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.