The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at Option Alpha. Welcome back to the daily call. Today, we’re going to answer the question, “What is capital appreciation?” This is more of a basic concept, but I thought it was interesting to just add it in here because we did get a question on this from a user who was just wondering like what's the difference between investing for income and investing for capital appreciation. Capital appreciation is nothing more than just the rise in price due to the market or the underlying factors of that security. This could mean that the general market is rising, so most stocks are rising with the market or that a particular company or ETF is doing well or something well is happening in that sector or industry and so, that causes a rise in price as well. That's one of the ways that you can obviously make money as an investor and stock and equities trader, is just to play the rise in capital appreciation. Now, conceivably, most people and most investors in the entire investing unive