Alibi Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Alibi, written in plain English, along with examples of how it is used.
What is Alibi?
v. to increase the value of an asset. Opposed to depreciate, this could be natural or artificial. Inflation, black marketing, rarity of occurance, exceptionally high quality of product, etc. are the situations that can lead to appreciations.
History and Meaning of Appreciation
Appreciation is a term used to describe the increase in the value of an asset or property. It's the opposite of depreciation where the value is going down. Appreciation can occur naturally or artificially. Natural appreciation occurs when the asset, like real estate or gold, increases in value due to an increase in demand or a decrease in supply. Artificial appreciation, on the other hand, occurs due to manipulation, like stock market manipulation, that artificially increases the price of an asset beyond its actual value.
Examples of Appreciation
- Real Estate - The value of land and property tends to appreciate over time, as it becomes more scarce and in demand.
- Art and Antiques - Appreciation is common in the art world, where pieces can become worth millions due to their rarity and historical significance.
- Currency - Some currencies appreciate in value due to macroeconomic factors, like inflation or interest rates.
- Stocks and Bonds - Stocks and bonds can appreciate in value as a result of strong company performance or increased demand.
- Collectibles - Like art and antiques, collectibles like stamps, coins, and baseball cards can appreciate in value over time due to rarity and historical significance.
Legal Terms Similar to Appreciation
- Depreciation - The opposite of appreciation, this term refers to the decrease in value of an asset over time.
- Market Manipulation - This term refers to illegal activities, such as insider trading, that artificially manipulate the price of an asset.
- Inflation - Inflation is the general increase in prices of goods and services over time, leading to a decrease in the purchasing power of a currency.
- Supply and Demand - This fundamental economic principle is the driving force behind many instances of appreciation, as scarcity or increased demand lead to higher prices.
- Asset Valuation - Refers to the process of determining the value of an asset, a necessary component of understanding changes in appreciation or depreciation over time.