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basically it is the increase in the value of an investment.

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13y ago

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Why investment increases?

increase in investment will expand the productive capacity of the economy


What describes a capital gain?

An increase in the value of an investment


What describes capital gain?

An increase in the value of an investment


What has to happen for you to have a capital gain on your investment?

For you to have a capital gain on your investment, the value of the investment needs to increase from the time you bought it to the time you sell it.


What accurately describes a capital gain?

an increase in the value of an investment :) tinaa


What is the mathematical formula for calculating yield of an investment?

100*Income from investment (over a period)/Average value of Investment The income may be in the form of interest, dividends or appreciation (increase in value of the asset).


What is the difference between investment and net investment?

"Net investment" deducts depreciation from gross investment. Net fixed investment is the value of the net increase in the capital stock per year.


How do you find the rate of return on an investment?

To find the rate of return on an investment, you calculate the percentage increase or decrease in the value of the investment over a specific period of time. This is done by dividing the difference between the final value and the initial value of the investment by the initial value, and then multiplying by 100 to get the percentage return.


When using the net present value method for evaluating an investment an increase in the required rate of return will?

The increase in rate of return will make the investment more difficult to be accepted.


Is investment considered an asset or a liability?

Investment is considered an asset because it represents something of value that is owned and can potentially generate income or increase in value over time.


What is a benefit in investing in a corporation?

Buying stock in a corporation is with the hope your investment will increase in value.


What is the expected rate of return on investment for this opportunity?

The expected rate of return on investment for this opportunity is the anticipated percentage increase in value or profit that an investor can expect to receive from their investment.