capital-appreciation

Vocabulary Word

Definition

'Capital appreciation' is the rise in value of an investment or asset over time. This is different than earning money through dividends or interest, it's simply the value of what you own increasing.

Examples in Different Contexts

In real estate investment, 'capital appreciation' refers to the increase in property value over time. A real estate investor might observe, 'We target properties in emerging neighborhoods for maximum capital appreciation.'

Practice Scenarios

Business

Scenario:

Our new product is gaining traction and has exceeded initial sales projections. This bodes well for the company's value.

Response:

I'm really happy with the capital appreciation we've seen. It highlights the effectiveness of our business strategy.

Stock Market

Scenario:

Tech stocks have had an impressive run this year. Their robust performance is drawing more investors.

Response:

The capital appreciation in the tech sector is quite compelling. It might be a good time to increase our holdings.