what does it mean to “break even” in finance/business
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Simply put, it’s when you make a sum of money equal to your investment. There is no profit or loss.
You buy $100 in stock for ABC Company. 5 years later the company has really taken off and you sell the stock for $500. That is a profit of $400.
You buy $100 in stock for ABC Company. 5 years later the company is falling apart and you can only sell the stock for $1. That is a loss of $99.
You buy $100 in stock for ABC Company. 5 years later they’re still just doing the same old, same old. You sell the stock for $100. That is breaking even.
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