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 ?
Even two of the seven insurers that continued to suffer unrealized losses narrowed the losses, the officials said.
Applicable Criteria and Related Research: Treatment of Unrealized Losses in U.
But S&P regards the impact on the banks' capital as minimal because it excludes unrealized gains from the banks' capital ratios while deducting unrealized losses from their capital when evaluating their capital strength.
As such, banks might not hedge interest rate risk from their securities portfolio since the hedge gains would not be able to mitigate unrealized losses from AFS securities that flow through to regulatory capital.
Combined, these dividends have averaged 50% of net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized losses (gains) on interest rate swaps, net(1) during this period.
While these unrealized losses may reflect poorly on our
If those projected adverse movements do not occur, or if favorable movements occur, gains in an amount determined by then current market conditions would be recognized in future periods to reverse the prior recognition of unrealized losses, up to a net loss of $3 million in the best case at maturity of the swaps.
Recorded net income excluding unrealized losses on interest rate swaps, net(1) of $26.
Operating earnings of $190 million, admission of non-admitted assets of $24 million, and reserve changes of $31 million were offset by realized and unrealized losses (including mortgage and real estate writedowns of $123 million and $69 million respectively).
The SEC requires a company to disclose the net of realized and unrealized losses on hedging contracts, not the specifics of what those contracts entailed or what portions of those losses have been realized.
46 per share, and net realized and unrealized losses of $3,821,726, equal to $0.
Despite the substantial unrealized losses, Fitch notes that underlying performance of the investment portfolio and the company remains fundamentally solid.