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4 years ago

Capital appreciation refers to

Business

2 answers:

kramer4 years ago

9 0

Option A is correct.

The capital appreciation refers to the increased value of the stock.

Further Explanation:

Capital appreciation: Capital appreciation is also known as capital gain. When the market value of the investment increases, the increment is known as capital appreciation. The difference between the purchase value and sales value is considered as capital appreciation.

Capital appreciation = Sales value – Purchase value

In the current case, increment in the value of the stock is known as capital appreciation as the value of the investment has increased since the time of the purchase.

Thus, capital appreciation refers to the increased value of stock.

Justification for the correct and incorrect options:

The increased value of a stock: This is the correct option.

The increase in the value of the investment is known as capital appreciation.

The ability to make a profit from owning stock: This is an incorrect option.

Capital appreciation is considered as an increment in the value of the investment. It does not deal with profit making.

The distribution of earnings to shareholders: This is an incorrect option.

The distribution of earning is known as a dividend.

The profitable sale of shares: This is an incorrect option.

The profit on the sale of asset is known as capital gain.

Learn more:

Learn more about the factors affecting the stock price

brainly.com/question/11192535

Learn more about the effect of the stock on the balance sheet

brainly.com/question/4503027

Learn more about the earning per share

brainly.com/question/10985616

Answer details:

Grade: High School

Subject: Business Studies

Chapter: Share & Debentures

Keywords: Capital appreciation, refers, stock, the value of stock, increase in the value, ability to make, profit, owning a stock, distribution, earning, shareholders, profit on sale of shares, stock, increase, in the value of asset, value increment.

Effectus [21]4 years ago

5 0

Capital appreciation refers to A. the increased value of a stock.
However, it doesn't only refer to the stock value, but value of any asset that is increased, such as bonds, land, etc.
The term is related to an influx of money that is going to bring many benefits to the person who is the owner of such assets.

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