What investment objective is primarily achieved through common stock and seeks capital appreciation?

The investment objective that is primarily achieved through common stock and seeks capital appreciation is growth. Investors who focus on growth are primarily interested in the increase in the value of their investments over time. Common stocks are often seen as suitable vehicles for this objective because they represent ownership in a company that has the potential to grow its earnings and market value, thereby increasing the stock price.

Investors pursuing growth typically accept higher volatility and risk in exchange for the opportunity for significant appreciation in their investment value. This aligns with the nature of common stocks, which can fluctuate widely based on company performance and market conditions, but also offer the potential for substantial returns over the long term as companies expand and increase profitability.

In contrast, the other options focus on different investment objectives. Income generation pertains to investments that provide regular income, like dividends or interest, without a primary emphasis on growth. Capital preservation aims to maintain the initial capital invested, prioritizing safety over appreciation. Speculation involves a higher-risk approach to investing, often looking for rapid price changes for short-term gains, which can overlap with growth but is more short-term in nature rather than focusing on steady appreciation.