APPRECIATION Definition

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APPRECIATION is the increase in the value of an asset in excess of its depreciable cost, which is due to economic, and other conditions, as distinguished from increases in value due to improvements or additions made to it.

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COUPON is: 1) The annual interest rate on a fixed income security, set at the time it was issued, at which that instru­ment will accrue and pay interest. 2) Small pieces of paper attached to nonregistered interest-bearing instru­ments that reflect the semiannual amounts of interest to be paid. These coupons are cut out and tendered on the appropriate coupon dates, and the interest is then paid.

INVESTMENT is the purchase of real property, stocks, bonds, collectible annuities, mutual fund shares, etc, with the expectation of realizing income or capital gain, or both, in the future. Investment is longer term and usually less risky than speculation.

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