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What Is Capital Appreciation?

By Matthew Frankel, CFPUpdated Sep 10, 2025 at 12:54 PM EST

Key Points

  • Capital appreciation is when an investment's market price rises above the purchase cost.
  • Total return combines dividends and capital appreciation for a complete profit picture.
  • Selling an appreciated asset turns it into a capital gain, relevant for tax calculations.

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What Is Capital Appreciation? | The Motley Fool