It is always important to know how your investments are performing from time to time; you will likely want to know how your different investments in various Companies are performing. This will be with a view to finding out how your decisions have helped you make or lose money. Some people will want to sell a stock that has made a 25 percent profit for then, after all commissions and taxes have been removed.
An effective monitoring program should provide you with sufficient information to evaluate the investments strengths and weaknesses, and help you find out on time if your investment objectives are likely to be met or not. Monitoring should include some analysis of not only what happened, but why.
There are two types of stock performance measurements:
1. Performance measurement
2. Performance evaluation
Performance measurement is a technical accounting function that computes the return of your whole stock portfolio.
Performance evaluation on the other hand is a function that uses the information generated by performance measurement to determine what contributed to, or detracted from the portfolios return.
Nigerian securities site has some good portfolio management tools.
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