Investment Fundamentals
Capital Appreciation
Definition
What is Capital Appreciation?
An increase in the market valueThe price at which an asset could trade in the market at a given time. of an investmentAn asset or commitment of money made with the expectation of future income, growth, or both..
Example in practice
How This Looks in Practice
A share bought for ₦40 and sold for ₦55 produces ₦15 of capital appreciation.
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Related Terms
Investment Fundamentals
Principal
The original amount of money invested or lent, excluding later returns.
Investment FundamentalsCapital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestment
An asset or commitment of money made with the expectation of future income, growth, or both.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.