Yield in finance refers to the return [the amount of money gained] on an investment, typically expressed as a percentage. It represents the income or profit generated by an investment over a specific period of time. Yield is influenced by factors such as interest rates, dividends [payments made to shareholders from a company’s profits], and capital gains [profits earned from the sale of an asset at a higher price than its purchase price].
For example, if you invest $1,000 in a bond [a financial agreement involving lending money] that pays 5% yield, you would earn $50 as annual income from that investment.
Very Simple Definition:
Yield in finance means the money you make from an investment. It’s the profit you get. For instance, if you invest $1,000 in something and you get $50 every year, that’s the yield.