Realized Gain or Loss
A realized gain or loss arises when an asset or position is sold, settled, exchanged, or otherwise disposed of relative to the relevant basis.
Investment gain and loss terms covering open positions, realization events, tax recognition, and worthless securities.
Realized and Unrealized Gains terms connect investment results to tax treatment, transaction cost, realized gains, unrealized gains, credits, penalties, and account implementation.
Use this branch when after-tax return, cost basis, distribution type, jurisdiction, account wrapper, or realized-versus-unrealized status changes the analysis.
| Term | Use it for |
|---|---|
| Realized Gain or Loss | A gain or loss measured after a sale, settlement, exchange, closing, or other disposition relative to the relevant basis. |
| Unrealized Gain or Loss | Change in an asset’s or open position’s value before sale, settlement, or another realization event. |
| Worthless Securities | Securities with no remaining value and the evidence, timing, accounting, and tax questions that follow. |
Check the tax jurisdiction, account type, holding period, cost basis, distribution character, realized status, documentation, and whether a professional tax conclusion is required.
This page is educational and does not recommend a specific investment strategy, security, tax treatment, or account choice.
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A realized gain or loss arises when an asset or position is sold, settled, exchanged, or otherwise disposed of relative to the relevant basis.
An unrealized gain or loss is the change in value of an asset or open position before a sale, settlement, or other realization event.
A worthless security has no remaining value, but bankruptcy, delisting, or a near-zero price alone may not establish tax worthlessness or its timing.