Thread: POT
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Old 9th February 2012, 07:31 AM
Barny Barny is offline
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Holy Cow ! I know they're just descriptive words, BUT, a lot of what we do is based on the fact that we all are able to communicate effectively, and I would have thought PROFIT in any sense of the word was an easy figure to work out ..... It's the relationship between the amount in EXCESS of the amount of money you've spent over a period of time.

In terms of explaining that as a ratio, so that we can make comparisons, we have the term POT. Invested $1,000 over six months, after six months you now have $1,100 = 10% POT.

We also have ROI or Retun on Investment (not as widely used or as valuable a ratio here I wouldn't have thought) = Invested $1,000 for a return of say $925 so ROI = 92.5% or a LOT of 7.5%
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