Stock investment earnings over time?

Question

If I buy a stock at $20 a share and it goes up to $100, do I only get 5x my original investment back? Or does the amount being made compound over time?

Answer 1

The value of stock is what you get/pay for it at the time you submit your request. If you bought it @ $20.00 per share and bought 100 shares. You would pay $2000.00 plus commision. If you sold the 100 shares @ $100.00 per share you would get $10,000. minus any commision. You do not get any compound intrest.

Answer 2

No it doesn't compound

You buy something for X and you sell it for Y, the difference is your profit/loss.  

You buy something from someone, you broker pays them, when you sell your broker receives the money for you - there's no way compounding can be brought into this type of transaction.

Before you buy land security you should make sure you know what you're doing, why your're doing and how to do it.