*Unrealized Gains*
-Word of the Day-
It refers to profit that you can make but haven’t actually made.
Let’s say you bought a stock and its price has climbed. But, you haven’t sold it yet.
In this case, the increase in the share price is your unrealized gain.
It is a gain that is not real yet and can vanish if the stock price falls before you sell it.
With stocks, the unrealized gain keeps going up and down all the time as the stock price changes from day to day. In fact, it might even go negative.
Seeing the unrealized gains change from time to time is a normal part of an investor’s journey.
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