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unrealized loss

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Financial Dictionary

Unrealized Loss

A loss that results from holding onto an asset rather than cashing it in and officially taking the loss.

Investopedia Commentary

Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss.

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See also: Capital Gain, Capital Loss, Realized Loss, Tax Gain/Loss Harvesting, Unrealized Gain

Also spelled: un-realized loss

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Financial Dictionary

unrealized loss

The reduction in value of an asset that is being held compared with its original cost. An unrealized loss usually must be realized by closing out the position before it can be recognized for tax purposes. Compare realized loss. Also called paper loss. See also wash sale 1.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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