unrealized profit

Definition

Profit which has been made but not yet realized through a transaction, such as a stock which has risen in value but is still being held. Unrealized profits are usually not taxable. also called unrealized gain or paper gain or book profit.

Use unrealized profit in a sentence

We had a lot of unrealized profit, so I hoped once that was done that we would be alright financially.

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The unrealized profit did not incur any tax liabilities for us because we are still in the same position on the security.

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The struggling trader was happy to learn that he had made a higher profit than previously thought on certain stock, which had risen in price without his knowing. and even more happily surprised to learn that unrealized profit was most likely not taxable.

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unrealized paper profit