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I am an accountant, so I can say you got it right.Originally posted by scarbrowed
This is really a confusion between profits and return on investment.
As a company seling things, if I buy something for $50, and sell it for $100 that is a 50% profit margin. Because 50% of my revenue is profit.
On the other hand, if I buy a stock for $50 and sell it for $100, I made a 100% return on my investment. Because my $50 investment made me another $50.
My father is an accountant, so I hope I'm remembering this conversation correctly.
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