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Capital appreciation

Updated: Aug 20, 2021

An increase in the prices of the assets owned by an enterprise. When increases in the value of land, buildings, equipment, or stocks are merely proportional to general inflation in the economy, it is argued that they do not increase the real value of a business. They should therefore not be included in its profits for tax purposes, or in the national income accounts.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.