Define: Capital Appreciation

UK Accounting Glossary

Definition: Capital Appreciation



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Full Definition of Capital Appreciation


Capital appreciation is defined as any increase in the market price of a stock. Investors who are long the market derive their trading profits from the capital appreciation of the stocks they hold. Capital appreciation can stem from a number of factors: capital appreciation can result from a company’s actual increase in growth or profits, or capital appreciation can be a result of a company’s anticipated future prospects, or it can result from other factors. Day traders and other short-term traders who rely on daily market fluctuations (i.e. volatility) are generally not as interested in a company’s capital appreciation potential as is a long-term investor. Genuine long-term capital appreciation is rooted in a solid foundation of good management combined with a viable product as well as a number of other market factors.


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Capital Appreciation. PayrollHeaven.com. Retrieved February 27, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/capital-appreciation/

Definition Sources


Definitions for Capital Appreciation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.