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Capital appreciation information


Capital appreciation is an increase in the price or value of assets.[1] It may refer to appreciation of company stocks or bonds held by an investor, an increase in land valuation,[2] or other upward revaluation of fixed assets.

Capital appreciation may occur passively and gradually, without the investor taking any action. It is distinguished from a capital gain which is the profit achieved by selling an asset. Capital appreciation may or may not be shown in financial statements; if it is shown, by revaluation of the asset, the increase is said to be "recognized". Once the asset is sold, the appreciation since the date of initially buying the asset becomes a "realized" gain.

When the term is used about stock valuation, capital appreciation is the goal of an investor seeking long-term growth. It is growth in the principal amount invested, but not necessarily an increase in the current income from the asset.

In the context of investment in a mutual fund, capital appreciation refers to a rise in the value of the securities in a portfolio which contributes to the growth in net asset value. A capital appreciation fund is a fund for which it is its primary goal, and accordingly invests in growth stocks.[3]

  1. ^ Capital Appreciation at Investopedia. Retrieved 2012-06-02.
  2. ^ Spillane, Chris (8 September 2011). "U.K. Homeowners Shouldn't Count on Capital Gains, Minister Says". Bloomberg. London. Retrieved 2012-06-02. 'Gone are the days where you buy a house for capital appreciation,' Shapps... said
  3. ^ Capital Appreciation Fund at Investopedia. Retrieved 2012-06-02.

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is the area of finance that deals with the sources of funding, and the capital structure of corporations, the actions that managers take to increase the...

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In corporate finance, capital structure refers to the mix of various forms of external funds, known as capital, used to finance a business. It consists...

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than bonds or preferred stock, it offers a greater potential for capital appreciation. Over the long term, common stocks tend to outperform more secure...

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total return generated for its shareholders, which includes both capital appreciation and reinvestment of dividends. RPM operates through four segments:...

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bonds, cash, real estate, and equity shares) with the expectation of capital appreciation, dividends, and interest earnings. Traditional investments are to...

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addition to a repayment. The use of tax incentives for attracting jobs and capital investment has grown over the past decades to include performance measures...

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firm's investment objective is to generate distributable income and capital appreciation and it aims to provide stable returns to investors across credit...

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describes the type of income that the fund seeks. For example, a capital appreciation fund generally looks to earn most of its returns from increases in...

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a portfolio management strategy focusing on generating long-term capital appreciation.[citation needed] Both funds make investment decisions with an eye...

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