Capital Appreciation Explained
In investing parlance, appreciation is the increase in an asset’s value over time. For example, a certificate of deposit (CD) offers interest over time. This is reflected as a percentage of the money you put into the CD, and gets paid out with the original amount you put into the CD when the account matures. If you buy a stock at a $15 share price and its share price increases to $20, your investment has appreciated by $5. In [...]