Definition of Appreciation
What does the term "appreciation" mean? What is meant by appreciation?
"Appreciation" occurs when an asset increases in value. The opposite of "appreciation" is "depreciation".
![The meaning of Appreciation in the world of business and finance - Dave Manuel Dictionary](https://www.davemanuel.com/images/def_appreciation.jpg)
In this case, your home has "appreciated" in value by $100,000 - truly a shrewd investment.
Or, in another instance, you decide to purchase 100 shares of Microsoft at $40/share. After two particularly strong earnings reports in a row, shares of Microsoft now trade at $50 per share.
In this case, your investment has appreciated in value by $1,000 (100 shares * $10 per share).
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