Capital Appreciation

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

Example of Capital Appreciation into Capital Gain

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.

Investments designed for capital appreciation include

  • real estate,
  • mutual funds,
  • ETFs or exchange-traded funds,
  • Stocks,
  • Commodities.