Increase in the book value of stocks and work in progress

Updated: Aug 20, 2021

The increase over some period in the value of stocks and work in progress as shown in firms’ accounts. This can be decomposed into two parts: the value at current prices of the real increase in stocks and work in progress, and stock appreciation, that is, changes in the value of the original level of stocks due to price increases. The real change in stocks forms part of gross domestic product; stock appreciation does not.

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

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.