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If an asset increases in value while you are still holding onto it, the increase is called an unrealized gain. Stocks in a portfolio may go up and down in
value, but their gains or losses go unrealized until you sell the stock. For
example, if you buy a stock for $100 and a month later the stock is valued at
$150, you have an unrealized gain of $50. Realized gains happen when you sell an asset.� The realized gain is the difference in the price of the
asset at the time you sell it versus the original price you paid for it.� When
a security such as a stock is traded, its gain or loss is said to be "realized."�
Only realized gains and losses are reported on you tax returns.
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