paper profits

Gains on paper

Paper profits are gains that exist only on paper—the increased value of an investment you haven't yet sold.

If you bought stock at $50 and it's now worth $80, you have a paper profit of $30 per share.

The profit becomes real only when you sell; until then, the price could fall.

I'm sitting on nice paper profits, but I'm not cashing out yet.

Also called unrealized gains.

Related

stock market · income · fair value · accounting · speculative bubbles · bubble burst · easy come easy go · counting chickens · buy low sell high · portfolio management · accounting principles · market valuation · net worth · riding high · risk assessment · capital allocation · tax efficiency · herd mentality

Opposites
realization status

paper profitscash in hand

Physical currency possessed now

money in the bank · real money · hard cash · liquid assets

tangibility of wealth

paper profitsliquid assets

Easily convertible wealth

cash · tangible assets

Family

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