Appreciation
Definition:
Appreciation is an increase in the value of an asset over time. It is a common term used in real estate, but it can also apply to other assets, such as stocks, bonds, and artwork.
Example:
Here are some examples of appreciation:
Real estate: The value of real estate can appreciate over time due to factors such as increasing demand, limited supply, and economic growth.
Stocks: The value of stocks can appreciate over time due to factors such as increasing earnings, dividends, and investor demand.
Bonds: The value of bonds can appreciate over time due to factors such as increasing interest rates and decreasing default risk.
Artwork: The value of artwork can appreciate over time due to factors such as increasing demand, limited supply, and artistic merit.