When you calculate the return from selling a stock purchased at a higher price, you should also consider?

When calculating the return from selling a stock, it's essential to include any commissions paid during both the purchase and sale of the stock. Commissions are transaction costs that reduce the overall profit from an investment. For example, if you bought a stock for a certain price and then sold it at a higher price, simply looking at the difference in those prices would not give you the complete picture of your financial gain. If you incurred commission fees at both transactions, those costs would need to be deducted from your profits to accurately assess your total return on investment.

Considering commissions is a fundamental part of calculating net returns, as these fees can significantly impact your overall performance, especially if you trade frequently or invest small amounts. Hence, accounting for these costs ensures a more precise calculation of how much you truly earned from the investment.