Appreciation (finance)

Etymology

From Latin "appretiare" (to set a price on) — ad "to" + pretium "price". To appreciate something is, at root, to appraise its worth, which is why the same word means both “to rise in value” and “to recognize value,” as in appreciating a kindness. Both senses come from the act of pricing.

noun · /uh-pree-shee-AY-shun/
An increase in the value of an asset over time.
What it names
The quiet growth of what you already own — the gain in a house, share, or currency that arrives without you doing anything.
Example
They earned more from the home’s appreciation over a decade than from a decade of salary savings.
Related idea
It is the exact opposite of depreciation, the loss of value as an asset ages or wears out; a house may appreciate while the car in its driveway depreciates from the day it is bought.
noun · /uh-pree-shee-AY-shun/
Grateful recognition of something; thanks.
What it names
expressed thankfulness
Example
They gave her a gift in appreciation of her years of service.
Related idea
Compare gratitude.
noun · /uh-pree-shee-AY-shun/
A full and sensitive understanding of something.
What it names
informed awareness or grasp
Example
He has a keen appreciation of the risks involved.
Related idea
Discernment born of understanding — an appreciation of jazz or fine wine — closer to a cultivated palate than to a flash of insight; it grows with knowledge rather than arriving all at once.