Yield Law and Legal Definition

Yield is a term subject to different definitions. In a financial context, it is the annual rate of return on an investment, expressed as a percentage. It may be calculated according to various methods. For bonds and notes, it may be calculated with the coupon rate divided by the market price. For securities, it is the annual dividends divided by the purchase price. However, these methods do not factor in capital gains, so they do not produce an accurate calculation of the total return on investments.

In the context of traffic laws, yield means to slow or stop to allow another vehicle to proceed ahead of you. A failure to yield may result in a traffic citation. Yield signs are used to protect traffic on one of two intersecting streets without requiring traffic on the other street to come to a complete stop.