What it is:
How it works/Example:
Also called book profit, paper profit is the not-yet-realized amount gained on a security based on the spread between its current market price and its original purchase price.
For instance, if a bond were purchased at $600 and the current market price is $1,200, the paper profit would be $600 ($1,200 - $600 = $600).
Why it matters:
The paper profit on a held security can be calculated at any point. This can be helpful to investors as they consider selling certain assets as part of their portfolio strategy.
When making a decision on your potentialtaxes you may incur as a result of selling.or loss, it's important to consider any fees or