How is profit calculated?

Profit = (sell price - buy price) × shares - commissions.

What are trading commissions?

Trading commissions are fees charged by brokers on each buy or sell transaction.

Do commissions significantly affect profit?

Yes, especially for small trades. Larger trades reduce the relative commission impact.

Stock Profit Calculator

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Stock Calculator: How to Calculate Your Investment Return in the Stock Market

Investing in stocks requires the ability to measure performance accurately. Calculating the true return involves more than the difference between the buy and sell price — dividends, commissions, and taxes all affect your net gain.

Basic Stock Return Calculation

**Total return = (Sell price - Buy price + Dividends) ÷ Buy price × 100**

Example: You bought a share at EGP 50, sold at EGP 65, and received EGP 3 in dividends: - (65 - 50 + 3) ÷ 50 × 100 = **36%**

Capital Gains vs. Dividends

**Capital gains:** Profit from the rise in the share price itself
**Dividends:** Your portion of the company's profits distributed to shareholders
**Total return:** The sum of both

On the Egyptian stock exchange, some companies pay dividends regularly — banks and telecoms for example — while growth companies prefer reinvesting profits.

Egyptian Stock Exchange Basics

The Egyptian Exchange (EGX) was founded in 1883 and is one of the oldest in the Middle East and Africa. The main index is **EGX 30**, comprising the 30 largest listed companies by liquidity and market capitalization.

**Trading hours:** Sunday to Thursday, 10 AM to 2:30 PM
**Broker commission:** Ranges from 0.05% to 0.25% of transaction value depending on the platform
**Capital gains tax:** 10% on capital gains from listed shares per the latest amendments

Calculating the Total Cost of a Trade

Buying 100 shares at EGP 50 each: - Transaction value: EGP 5,000 - Broker commission (0.15%): EGP 7.50 - Stamp duty and other fees: ~EGP 3 - **Total cost:** EGP 5,010.50

To break even, the share price must rise above at least EGP 50.11.

Tips for the Beginner Investor in the Stock Market

Never invest money you cannot afford to lose
Diversifying across different sectors reduces risk
Study the company before the stock: revenues, profits, and debt ratios
Avoid panic decisions when markets fall — patience is an investor's greatest virtue
Use market orders and limit orders strategically to improve your entry price

FAQ

How do I start investing in the Egyptian stock exchange?▼

You need to open a brokerage account with a firm licensed by the Financial Regulatory Authority. The process involves submitting your national ID, income documents, and signing registration forms. You then receive a unique investor code and can trade electronically.

Are dividends taxed in Egypt?▼

Yes. Shareholder dividends are subject to a 10% tax in Egypt, deducted automatically before distribution. Capital gains from selling shares are also subject to a 10% tax.

What is the difference between day trading and long-term investing?▼

Day trading relies on profiting from price fluctuations within a single session or a few days, requiring expertise, time, and constant monitoring. Long-term investing involves buying shares of good companies and holding them for years. The latter has historically proven to be lower risk and higher return for the average investor.

How do I know if a stock is expensive or cheap at its current price?▼

The most common measure is the Price-to-Earnings (P/E) ratio: share price ÷ earnings per share. A low P/E may indicate an undervalued stock; a high P/E may signal high growth expectations or overvaluation. Always compare a company's P/E to its sector average.

Do I need significant capital to start in the stock market?▼

No. You can start with relatively small amounts — some platforms allow trading starting from EGP 500. What matters most is learning first and starting with an amount whose loss would not impact your financial life, then gradually increasing investment as experience accumulates.

Results are approximate and for educational purposes only, not financial or legal advice. Consult a certified financial advisor before making financial decisions.