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Appreciation

• The increase in value of an asset.

 
 Embedded terms in definition
 Asset
 
 Referenced Terms
 Advanced refunding: Is the technique of replacing one bond issue by another. This typically occurs when a municipality can borrow at more favorable terms than the outstanding issue. The new issue's proceeds are used to purchase government obligations which are held in escrow. The income and/or Appreciation of these government securities is then used to service the outstanding debt. The escrow may be held until the first call date or maturity of the initial bond issue. If the escrowed funds retire the original issue at the first call date then the issue is pre-refunded. This retirement and replacement process of debt is also known as defeasance.

 Average dividend yield: Combined with price Appreciation, the average dividend yield (if any) can show a potential total return from a security investment. The formula for the average dividend yield is:
(EPS *Average Payout) / current price
where EPS = Estimated Future High EPS / (1 + EPS Growth) 2.5
Companies that pay a dividend will generally increase the dividend as EPS grow. Share price growth will usually follow the dividend increases, and thus keep dividend yield at a constant percentage.

 Common stock: These are securities that represent equity ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share in a company's profits via dividend payments or the capital Appreciation of the security.A share of ownership in a corporation; stockholders participate in the profits or losses of a company through dividends and changes in the stock s market price.Is the shareholder's equity stake in a corporation. Sometimes, there are different classes of stock that may have greater or lesser voting rights than the ordinary common shares. For many years the New York Stock Exchange only permitted one class of common stock for a listed corporation.A class of stock in a company, normally with voting rights. Corporations may have several classes of common stock, as well as Preferred Stock, or they may have a single class of common stock. Common stockholders are on the bottom of the ladder in a corporation's ownership structure, and have rights to a company's assets only after bond holders, preferred shareholders and other debt holders have been satisfied.

 Effective interest rate international context: The rate equal to the nominal rate plus (or minus) any forecast Appreciation (or depreciation) of a foreign currency relative to the currency of the MNC parent.

 Exchange risk: The variability of a firm's value that results from unexpected exchange rate changes or the extent to which the present value of a firm is expected to change as a result of a given currency's Appreciation or depreciation.

 
 Related Terms
 Capital appreciation
Price appreciation

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