paper loss

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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.

paper loss

Paper profit (or loss).

If you own an asset that increases in value, any increase in value is a paper profit, or unrealized gain. If you sell the asset for more than you paid to buy it, your paper profit becomes an actual profit, or realized gain.

The same relationship applies if the asset has lost value. You have a paper loss until you sell, when it becomes a realized loss.

You owe no capital gains tax on a paper profit, though you use the paper value when calculating gains or losses in your investment portfolio, for example. The risk with a paper profit is that it may disappear before you realize it. On the other hand, you may postpone selling because you expect the value to increase further.

References in periodicals archive ?
Still, some in the industry have had a hard time accepting real-dollar losses for natural person credit unions when, so far, everything at the corporates is just paper losses.
The silver lining is that you can use investment losses to reduce taxable income so long as you are willing to turn paper losses into real profits and work around IRS offset rules and annual net-loss deductibility limits.
Paper mills can significantly reduce off color and off shade paper losses by splitting the flow of dyes and fluorescent whiteners.
The New Zealand carrier's share price dropped again on 25 September and it has, along with its two largest shareholders, suffered paper losses of about NZD2.
4 billion yen in paper losses on golf club membership certificates.
com and Robert Glasser of RealNetworks, got hit with hefty paper losses after the market downturn.
s Internet World confab, nary a word about paper losses, bursting bubbles, or job security.
Holders of equity securities suffered losses, or at least paper losses.
The recent 35 percent devaluation of the Mexican peso plus reputed paper losses of some $8 billion for U.
Perhaps it shouldn't be surprising that the most consistently successful native corporation has been among the most aggressive in searching out paper losses to sell.
Operationally, our developing subsidiaries still generate some paper losses due to fundings, marketing, branding and short selling pressures on those funding needs.
Banamex suffered significant paper losses from unauthorised trading, the sources said.