If I invested $10,000 in the stock market with credit card money (0% APR) and make a $2500, what is my ROI? ?

Question

The return is calculated by change over base. However, in this case... the base is 0, since I didn't put down any of my money. So is the ROI 2500%? Isn't $2500 pure profit since I didn't use any of my own money, assuming that I'm borrowing $10,000 from the bank at 0% APR on a promotion offer.

Answer 1

If you are actually considering doing this, its a really bad idea.  If you even think there is a decent chance you can make $2500 in the stock market in a pretty short time you are way to overconfident.  When you invest that $10,000 and end up LOSING $2500 - your return will be -25% to start off with.  Then since you can't pay back the credit card they'll start racking up interest charges.  With a goofy idea like this I'm going to guess you end up with a negative 30% return at best.

Answer 2

you'll end up makin -$2500 if you invest right now