Capital Appreciation is an investment return
Capital appreciation is a rise in an investment's market price.
It makes money by selling your shares for a profit
Investor - $10 per share
Stock price rises to $12,
Investor has $2 earned in capital appreciation.
Investor sells the stock,
The $2 earned becomes a capital gain.
Capital Appreciation isn't taxed
Capital Gain is taxed, that is when the capital appreciation is sold.
Created: 2023-09-26 Tags: #fleeting Link: Capital Appreciation: Meaning, Types and Examples (investopedia.com)