Stock Calculator

How does Titan’s stock calculator work?

Titan’s stock calculator gives you the ability to project how much you could profit from an investment in a given stock. Here’s how it works. You’ll input the following:

• The price you paid or will pay per share.

• The number of shares you bought or plan to buy.

• The price you sold or will sell the shares for.

Then, the calculator will tell you:

• The total profit or loss on the investment in dollars.

• The return-on-investment (ROI), expressed as a percentage.

Note that this calculator doesn’t take into account any taxes you would owe on profits. You’ll need to factor that in yourself.

How is a stock price determined?

The price of a stock is determined by supply and demand. If more people want the stock than the number of shares available, the price goes up. Conversely, when lots of people are looking to sell their shares, the price of the stock falls. It’s this buying and selling between investors that ultimately determines the price of a stock. But how do investors decide whether to buy, sell, or hang on to their shares? There’s no magic stock price formula, but rather multiple factors affecting share prices in the stock market.

• Business fundamentals. This includes information like the company’s earnings, sales, and outlook, which are shared publicly in quarterly financial reports, along with details like customer growth, cost-cutting measures, and other factors.

• Company news. Company news and events such as executives arriving or leaving, regulatory probes, and landing (or losing) a big customer, could affect a stock’s price.

• World events. Events that happen outside of the company can still impact its financial performance—or the perception of its value. A new administration with a more permissive regulatory stance, in general or for a company’s specific field, could be seen as a boon and send the stock higher. Geopolitical tensions and natural disasters can affect shipping routes or oil production, which can trickle down to have an impact on companies in many industries.

• General market sentiment. During times of economic crisis, like the Great Recession of 2008 and the Covid-fueled market downturn in 2020, the stock market in general tends to decline. Institutional investors making big moves into a certain part of the market could kick off a trend that gets other investors piling in too.

What are the potential benefits of investing in stocks?

Investing in the stock market can be a way to generate income and grow your overall wealth. Here are a few potential benefits of investing in stocks.

• Stay ahead of inflation: If investments in stocks generate an annual rate of return that’s higher than the annual inflation rate, those investments can protect your money from the rising costs of goods and services. For instance, the average return for the S&P 500 index over the last 10 years was 13.9% annually, versus annual inflation rates, which have averaged between 1 and 3% over the last 10 years.

• Earn passive income: Smart investments can lead to passive income—that is, income you generate without much day-to-day involvement. Those who want to earn passive income in the stock market can invest in companies or funds that have a strong track record of paying dividends. But remember: Dividends and returns on money invested in the market are not guaranteed. Historical average returns should give you a directional sense of what’s possible, but they’re not a promise of future performance.

• Maintain liquidity: Stock investments are usually very liquid, and online brokerage accounts make it easy and inexpensive to buy and sell stocks—much easier than, say, buying and selling an asset like real estate. Money generated from selling stock is usually available almost immediately to investors.

What are the risks of investing in stocks?

Stocks are subject to risk, just like any other investment.

• Equity risk. The market price of shares rises and falls all the time based on supply and demand (propelled by investor optimism or lack thereof). Equity risk is the risk of losing money because the market price drops below what you paid for it.

• Liquidity risk. Stocks are generally liquid, but not always. Depending on what kinds of stocks or funds you buy, there’s a risk of not being able to sell securities at a fair price and take your cash out.

• Concentration risk. When you put all those proverbial eggs in a single basket; i.e., concentrate all your money in one type of investment, you risk losing the whole amount if that security loses its value. Diversification is one strategy to mitigate this type of risk.

• Horizon risk. The time horizon is the length of time you expect you’ll hold an investment. But sometimes life gets in the way of your plans. Unforeseen life circumstances may force you to sell investments you’d intended to hold for the long term. If the timing of the sale coincides with a lower share price, you could lose money.