Lose 10%, Gain 10%—Back to the Start?

An investment is something you put money into, hoping it will grow in value. It can also lose value.

Try this made-up example:

1. An investment starts at $100.
2. It loses 10%. That's $10, so $90 is left.
3. It then gains 10%. Ten percent of $90 is $9.
4. The new total is $99.

Why isn't it back at $100? The second 10% uses a smaller starting amount.

A return is the money gained or lost on an investment. It can be positive or negative. Real investments can lose money.

This example shows how percentages work. It doesn't predict what an investment will do.