An unrealized loss is when an investor experiences a loss on a security but has not yet sold it. If the security’s value rises, the loss may be temporary, but if it continues to fall, the investor may want to sell to avoid further loss. Unrealized gains and losses only become realized when the security […]
An unrealized gain is a profit made on a stock that has not yet been sold. It is not considered earned until the investor sells the stock and takes the profit. The gain is subject to tax when the investor sells the stock. The term “paper wealth” is used to describe unrealized gains. An unrealized […]
