Capital appreciation refers to the increased value of an asset. the ability to make a profit from owning stock. the distribution of earnings to shareholders. the profitable sale of shares.

I believe the answer is: the increased value of an asset

In a capital appreciation, the value of assets that we purchased in the past is increased due to some circumstances, (could be because we make a direct modification to the asset or the market valuation of the asset is increased). Example of this is when we bought a piece of land 10 years ago and the value is doubled today.