Appreciation

Appreciation

Increase in the value of an asset.

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appreciation

1. An increase in value, as of an asset.

2. Used to distinguish between securities that are likely to provide profits because of increases in price and those that provide dividend payments.

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Appreciation. When an asset such as stock, real estate, or personal property increases in value without any improvements or modification having been made to it, that's called appreciation.

Some personal assets, such as fine art or antiques, may appreciate over time, while others -- such as electronic equipment -- usually lose value, or depreciate.

Certain investments also have the potential to appreciate. A number of factors can cause an asset to appreciate, among them inflation, uniqueness, or increased demand.