What is a clean investment income?

Pure investment income is the total amount of profits obtained from investment sources after all losses have been deducted. For individuals, this sum may come from mutual funds, shares, bonds or loans and is taxable for the rate that depends on the source of income. The company also has to deal with a net investment income concerning all investment income for companies as soon as expenses and losses are calculated. For companies, this amount is often calculated on the basis of shares by distributing the amount of net income obtained by the amount of outstanding shares in the company. For example, a person can buy shares that have been rising many times over time and decreases in the price. If all the different investment gains and losses that have been collected are collected, it creates a single value that represents a number of income obtained from investment sources. Thje the total number known as a net investment income and is usually calculated after a year's time for tax purposes.

There are many different possible sources of investment income that can take into account the total net investment income. Shares, bonds and mutual funds are three of the most common of these sources, but there are other income options, such as the interest obtained from loans to other entities. The basic income requirement to be considered to be an investment income is that the person never actually works for this income, but rather gets it from some form of investment opportunities.

Financial companies also calculate their net investment income as a way to bring this information to shareholders. Pure income for companies is calculated in almost the same way as for individuals, because losses and expenses are deducted from profits obtained by investment. Companies with Avysoký net income obtained by investing can hand over these profits to investors in the form of dividends.

In many cases society calculate their netInvestment revenue per share on the share. This is done by distributing net income in a single year by the number of shares currently owned by investors in the company. As an example, imagine a company that has earned $ 100,000 (USD) in investment income during the year and has 10,000 outstanding shares. The $ 100,000 distribution by $ 10,000 provides a total of $ 10 investment income per share in the company.