unrealized gain

Unrealized Gain

A profit that results from holding on to an asset rather than cashing it in and using the funds.

Notes:

Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain.

See also: Unrealized Loss

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unrealized gain

The increased market value of an asset that is still being held compared with its cost of acquisition. Unrealized gains are not usually taxable. Also called paper gain, paper profit. Compare realized gain.