Investing can feel overwhelming, especially when you are trying to read your monthly account statement.

The next time you receive your statement, instead of just setting it aside, spend a few minutes trying to really understand it.

Most statements are divided into three sections: account holdings, account activity and income summary.

Account holdings

This section itemizes the individual holdings in your account as of the statement date and includes the quantity held, the book value and market value of the individual holdings.

Book value is the price paid for a particular investment and will not change for as long as you hold the investment. Market value is the price you would have received if you sold your investment on the date of the statement. The difference between the market value and the book value is your profit or loss on the investment.

For example, if you bought a house several years ago for $150,000, this represents the book value. This amount would not change while you own your house.

If today you sell your house for $300,000, this amount is the market value. The difference between the two amounts is your profit or loss on your investment.

Account Activity

This section provides detailed information about all of the activity in your account during the month. If you made any purchases or sold any holdings, this is where you will see the details including quantity, price and settlement terms. This section also shows what companies paid you dividends and interest during the month.

Income Summary

This section includes the total dividend and interest income earned on your account for the statement period and often includes a separate column for year-to-date income earned.

Statements contain valuable information for the investor and are ultimately the guide to how your investments are performing. Spending a few minutes monthly to assess how your investments are doing is time well spent.

Janine Martin is an investment adviser with Odlum Brown Limited, Member CIPF. Her column appears Fridays.