Business and Personal Finance Dictionary

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• PAPER PROFIT (OR LOSS)
  
  If you own a security or other investment that increases in value, but you don't sell it, the gain is your paper profit, or unrealized gain. But if you sell at the higher value, your paper profit becomes an actual profit, or realized gain. The same relationship applies if the security has lost value. Your paper loss isn't realized until you sell.
  
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