I just started an investment account and I have no idea what “Unrealized Gain/Loss” means. I’ve tried looking it up and asking friends but its just not clicking with me. Can anyone explain to me in the simplest terms possible with no jargon. Thanks!
In: 4
It means gains/losses you haven’t converted to cash.
if you buy a stock at $100 and it goes up to $110, you have $10 in unrealized gains. If you sell the share at $110, then it’s a realized gain of $10. Only when you sell and have realized the gain, would you then be taxed on it, owing capital gains taxes on the $10 of realized gains.
Latest Answers