A
gain on an
investment that has not yet been realized. That is, a paper gain occurs when the current
price of a
security is higher than the price the
holder paid for it, but the holder still
owns the security. As a result, there is the possibility that the paper gain might be erased if the price goes back down. A paper gain represents an increase in one's
net worth, but it may or may not affect one's lifestyle. See also:
Paper loss.