Browse Investing

Realized and Unrealized Gains

Gain and loss terms for realized gains, unrealized gains, profits, losses, 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.

Key Terms in This Branch

TermUse it for
Realized GainA tax, cost, distribution, or realized-status term that can change after-tax interpretation.
Realized ProfitsA term page that narrows this branch to a specific investing concept, evidence source, or decision point.
Unrealized GainA tax, cost, distribution, or realized-status term that can change after-tax interpretation.
Unrealized Profit/LossA tax, cost, distribution, or realized-status term that can change after-tax interpretation.
Worthless SecuritiesA term page that narrows this branch to a specific investing concept, evidence source, or decision point.

What to Check

Check the tax jurisdiction, account type, holding period, cost basis, distribution character, realized status, documentation, and whether a professional tax conclusion is required.

Common Mistakes

  • Applying a tax label without checking jurisdiction and account type.
  • Comparing pre-tax and after-tax returns as if they were the same measure.
  • Ignoring cost basis, holding period, realized status, and distribution character.
  • Treating educational tax vocabulary as personalized tax advice.

This page is educational and does not recommend a specific investment strategy, security, tax treatment, or account choice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Realized Gain

A realized gain is profit recognized when an asset is sold or otherwise disposed of above its adjusted cost basis.

Realized Profits

Realized profits are gains recognized after an investment or asset is sold, settled, or otherwise converted into a completed transaction.

Unrealized Gain

An unrealized gain is a paper profit on an asset that has increased in value but has not yet been sold.

Unrealized Profit/Loss

Unrealized profit or loss measures paper gains or losses on positions that remain open and have not been settled or sold.

Worthless Securities

Worthless securities are investments that have lost all practical value, often creating tax and accounting recognition questions.

Revised on Sunday, June 21, 2026