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capital-appreciation

/ˈkæp.ɪ.təl əˌpriː.ʃiˈeɪ.ʃən/
IELTSAcademic
noun

An increase in the value of an asset, such as shares, property, or land, over time. People use it when the asset is worth more than when it was bought.

  • The house gave us strong capital appreciation.
  • She bought shares for capital appreciation.
  • This fund focuses on capital appreciation.

Adinary Nuance

Capital appreciation is not the same as income or profit from regular payments. It means the asset itself becomes more valuable. Investors choose this term when they care about price growth, not dividends or rent. It is more specific than 'gain' and more formal than 'making money'.

In other languages

Vietnamese
tăng giá trị vốn
Spanish
apreciación del capital
Chinese
资本增值
Japanese
資本増価
Korean
자본 가치 상승

Etymology

Capital comes from Latin capitalis, meaning 'of wealth or property'. Appreciation comes from Latin appreciatio, meaning 'a rise in value'. The phrase became common in finance and investing.

Common phrases

capital appreciation potentialseek capital appreciationcapital appreciation fundcapital appreciation over time

Synonyms

Related words

Frequently asked questions

Is capital appreciation the same as capital gain?
They are closely related. Capital appreciation is the rise in value, while capital gain is the profit you make when you sell.
Is capital appreciation used in business writing?
Yes. It is common in finance, investment reports, and formal business writing.
Can property have capital appreciation?
Yes. If a property becomes more valuable over time, it has capital appreciation.
Does capital appreciation include dividends or rent?
No. It only means the asset's value goes up. Dividends and rent are separate income.