summing up an abbreviation is a shortening of a word or a phrase an acronym is an abbreviation that forms a word an initialism is an abbreviation that uses the first letter of each word in the phrase thus some but not all initialisms are acronyms
ROI, or return on investment, is a common business term used to identify past and potential financial returns. Managers and executives look to the ROI of a project or endeavor because this indicates how successful a venture will be.
What is 'Return On Equity - ROE' Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. ROE is expressed as a percentage and calculated as: Return on Equity = Net Income/Shareholder's Equity. Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.)