Legal Definitions - appreciation

Appreciation is when the value of something goes up. This can happen because of things like inflation or changes in the economy. The opposite of appreciation is depreciation, which is when the value of something goes down.

Appreciation can also mean recognizing or understanding the value of something or someone. For example, you might show appreciation for a friend who helped you out by saying thank you or doing something nice for them.

Here's an example of appreciation in terms of an asset:

Let's say you bought a house for $200,000. Over time, the value of the house goes up to $250,000. This increase in value is called appreciation.

And here's an example of appreciation in terms of recognizing the value of something:

You might show appreciation for your parents by telling them how much you love and appreciate them. This is a way of recognizing their value and importance in your life.

Both of these examples illustrate the definition of appreciation - in one case, the value of an asset is increasing, and in the other case, someone is recognizing the value of something or someone else.