Business Administration

Tag: Realized

  • Realized and Unrealized Gains or Losses

    Realized and Unrealized Gains or Losses

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    by

    David J Hoare MSA
    in

    When a product or investment is sold, the seller must realize a gain or loss from the transaction. The actual sale or transaction will trigger the gain or loss realized.  In effect, the receipt of cash sets the threshold for a ‘REALIZED’ amount. Unrealized gains or losses are potential i.e. on paper transactions.