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 ?
The overpayments were made in a scheme known as stock appreciation right, under which directors can receive a bonus if their company's share price rises above a certain level in a set time period.
Most of Roku's recent stock appreciation is "very well warranted" for a company whose fundamentals are the "very best you can find" in the mid-small-cap internet space, Mahaney said.
It had cancelled the Employee Stock Appreciation Rights (ESAR) scheme and the rights granted under the plan with effect from March 20.
Mountain resort operator Vail Resorts Inc (NYSE:MTN) said on Tuesday that it expects to receive USD15.7m from its chairman and chief executive officer Rob Katz following the exercise of stock appreciation rights (SARs)
ESOP Plus[R] - www.esopplus.com - is a national boutique law firm that guides it clients through succession and exit planning strategies using employee stock ownership plans (ESOPS), phantom stock plans, stock options, stock appreciation rights and other techniques for encouraging employee ownership.
Finally, they point to a variety of stock rights, including stock options, restricted stock, stock appreciation rights, phantom stock and employee stock purchase plans.
Under the plan, Piper Jaffray may issue awards to new employees in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents or similar awards.
Squali points to the short interest on Stitch Fix at 28% of float that is likely to drive the shares higher over the near term after the results, but believes that long-term stock appreciation can also be generated by the "sustainable" revenue growth and improving margins.
The amendment to the Articles of Association proposed by the Board of Directors regarding Stock-settled Stock Appreciation Rights (S-SARs) and Restricted Stock Units (RSUs) was also approved with 99.60% of the votes represented.
Before you embark on a sale process, familiarize yourself with some of the more common strategies that buyers use, including deferred stock and stock appreciation rights, setting aside a cash bonus pool, entering into employment agreements with key executives, and giving certain executives the right to purchase additional shares of the company.
With an ever-greater proportion of national wealth being channelled into stock appreciation, the lost revenue will need to be found in other places.
In addition, holders of FBLB's stock appreciation rights will receive cash payments from Heartland in the aggregate amount of approximately $13.3 million.