Paper Profit

Paper Profit
Paper profit refers to an increase in the value of an asset that is recorded in the books but has not been realized through a sale. It's a theoretical gain that can fluctuate greatly before any actual profit is recognized.
Paper Profit (Loss)
Unrealized gain (loss) in an investment or portfolio, calculated by comparing the current market price to the investor's cost.
Unrealized Profit (Loss)
Unrealized profits or losses represent the gains or losses that have occurred but have not yet been actualized through the sale of an asset. These figures remain 'on paper' until the asset is sold, transforming them into realized profits or losses.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.