investing

appreciation

An increase in the value of an asset over time.

Example

"The appreciation of their home over 10 years added $150,000 to their net worth."

💡 Memory Tip

When you appreciate something, you value it more. Same with assets — appreciation means the market values it more.

Etymology

From Latin 'appretiare' meaning 'to set a price on' — when the price rises.

Common Misspellings

apreciationappreciatonappreciaionapprecieation

Related Terms

depreciationcapital gainsequityasset

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