stock appreciation

Stock Appreciation

An increase in the value of a stock. Stocks may appreciate or depreciate depending on market conditions, such as dividend schedules, supply, demand, underlying value of the company, and so forth. Stock appreciation is used to calculate capital gains taxes. See also: Appreciation.

stock appreciation

the increase in the market value of STOCK held during a specific time period, generally because of INFLATION. Accountants value stock at the lower of either cost or net realizable value in the BALANCE SHEET, not at replacement cost, and when stock is sold, tax is paid on the profits arising. This gives rise to ‘phantom profits’ and is one reason why British firms were given stock relief in taxation calculations during the inflationary period of the 1970s. Where prices are falling, stock depreciation results. See also HISTORIC COST, INFLATION ACCOUNTING, STOCK VALUATION.

stock appreciation

the increase in the market value of STOCK held during a specific time period, generally because of INFLATION. In a firm the accountant will value stock at the lower of either cost or net realizable value in the BALANCE SHEET, not at replacement cost, and when stock is sold, tax is paid on the profits arising. This gives rise to ‘phantom profits’, which, when taxed, can result in over-taxing the firm's real profits.

Where prices are falling, stock depreciation results.

NATIONAL INCOME ACCOUNTS also have to take the problem of stock appreciation into account. The government statisticians have the difficult task of excluding such monetary appreciation from the final calculation so as to include only real stock increases. See also HISTORIC COST, INFLATION ACCOUNTING, STOCK VALUATION.

References in periodicals archive ?
162-27(e)(2)(vi)(A) in the final regulations clarifies that the plan under which an option or stock appreciation right is granted must state "the maximum number of shares with respect to which options or rights may be granted during a specified period to any individual [emphasis added] employee" (per-employee limitation requirement).
Livek also holds 360,000 stock options, 75,000 stock appreciation rights and 103,500 restricted stock units (RSUs).
TOTAL RETURN REFLECTS STOCK APPRECIATION AND INCLUDES STOCK SPLITS AND DIVIDENDS.
Stock options and SARs relief: Notice 2006-79 states that the transition relief does not extend to stock options or stock appreciation rights (SAILs) that:
Our Stock Plan Services offers comprehensive equity compensation plan solutions--including stock option, employee stock purchase, restricted stock and stock appreciation rights--for institutional clients and their employees based in the U.
This would indicate that unless REITs manage impressive gains in earnings, the pace of stock appreciation may be curtailed.
IRS Notice 2005-1 provides guidelines to help tax practitioners transition their clients to full compliance by the end of this year, including some tricky deferred compensation issues such as stock options and stock appreciation rights.
The Burbank entertainment company will now require shareholder approval to reprice stock options or stock appreciation rights.
At the same time, there has been a marked change in how companies view dividends, increasingly seeing them as part of a total pay scenario that includes stock repurchases and stock appreciation.
28, 1988) addresses the grant of stock appreciation rights and phantom stock by a foreign corporation to employees of its U.
Moog" or the "Company") (NYSE: MOG-A and NYSE: MOG-B) for potential breaches of fiduciary duties in connection with their conduct in seeking shareholders' approval for an amendment to the Company's 2008 Stock Appreciation Plan.
a leading multi-brand apparel retailer specializing in women's plus-size apparel, today announced that in accordance with Nasdaq Marketplace Rule 4350(i), it has granted 85,000 stock appreciation rights to Kady Dalrymple, the Company's new Sr.