4.28.2008

Capital Appreciation

One of the two components of total return.
Capital appreciation is how much the underlying value of a share has increased.
If you bought a stock at Rs 100 and it has risen to Rs 130, you have obtained a 30% return from the appreciation of the original capital you invested.
Dividend yield is the other component of total return.
Some times the value of the stock may come down from the value you bought in this case you will get negative returns.