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 ?
15 per share on December 11, 2017, the stock and cash transaction includes the cash consideration to be paid to holders of FBLB's stock appreciation rights.
6 million (including the cash consideration to be paid to holders of FBLB's stock appreciation rights).
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).
But inflation has long been running above 20 percent a month--10 times more--so stock appreciation has not kept up.
The Association of Flight Attendants-CWA (AFA-CWA) released a statement on the 20 August stating that flight attendants at US Airways are outraged over an announcement by the airline that seven of its executives were recently awarded stock appreciation grants worth, allegedly, several million dollars.
HCSS now has a three-tier approach to employee ownership with annual cash profit sharing, Stock Appreciation Rights and ESOR Through these tools, employees are rewarded financially for the positive impact they have on the company and are able to see how their work affects company performance.
TOTAL RETURN REFLECTS STOCK APPRECIATION AND INCLUDES STOCK SPLITS AND DIVIDENDS.
Dionex's aggressive stock repurchasing efforts also contributed to its stock appreciation.
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.
According to Joseph Field, a senior partner at Withers Bergman in New York, "in the view of my firm, nonqualified compensation arrangements now subject to Section 409A rules include salary and bonus deferral plans, supplemental executive retirement plans, stock options giving the optionee the right to purchase stock at a price below fair market value at the date of the grant, most stock appreciation right plans and restricted stock unit plans.