In page navigation

Profit margin

Updated: Aug 20, 2021

Profit margin

Profit margins are calculated after the sale has taken place in order to see if one actually achieved the calculated selling price.

Sale in any circumstance is like participating in an open auction. Disturbances like price wars between competitors, popularity in the market, political decisions and all sorts of different reasons might alter the final selling price of the stock kept by a company.

Profit margin is then used as a general guide line on how to calculated later selling price in realtion to initial purchase price.

Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.