What are unrealized gains and losses?

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2 weeks ago
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Unrealized gains and losses are simply those amounts that are the result of what a position is worth versus what you paid for it.

For example, if you bought a share of stock at $50 per share, and it's now worth $100, your unrealized gain is $50 per share. If the stock was now worth $10 per share, your unrealized loss is $40 per share.

Realized gains and losses are what get reported to the IRS in a taxable account(versus a tax-deferred or qualified account, like an IRA) when you actually sell the shares.  If you sold the shares in our example above, you would REALIZE a gain of $50 per share, or a loss of $40 per share.

March 2005
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