Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,899,000,932 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Unrealized Loss

   Also found in: Dictionary/thesaurus 0.01 sec.
Paper Loss
A loss on an investment that has not yet been realized. That is, a paper loss occurs when the current price of a security which is still owned by the holder is lower than the price the holder paid for it. As a result, it is possible that the paper loss might be erased if the price increases again. A paper loss represents a decrease in one's net worth, but it may or may not affect one's lifestyle. See also: Paper profit.

unrealized loss
The reduction in value of an asset that is being held compared with its original cost. An unrealized loss usually must be realized by closing out the position before it can be recognized for tax purposes. Also called paper loss. Compare realized loss. See also wash sale.

Unrealized loss. If the market price of a security you own drops below the amount you paid for it, you have an unrealized loss.

The loss remains unrealized as long as you don't sell the security while the price is down. In a volatile market, of course, an unrealized loss can become an unrealized gain, and vice versa, at any time.

One reason you might choose to sell at a loss, other than needing cash at that moment, is to prevent further losses in a security that seems headed for a still-lower price.

You might also sell to create a capital loss, which you could use to offset capital gains.



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
With unrealized profit on securities holdings at 350 million yen, the balance of unrealized loss and profit came to 23.
Total net realized and unrealized loss from investment activities were $(12,561,344) equal to $(1.
Fitch recognizes that the magnitude of the overall $997 million unrealized loss reported for the first quarter ended March 31, 2008 was substantial.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.