# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Realized Gain

Written By
Paul Tracy
Updated September 30, 2020

What is a Realized Gain?

Realized gains are increases in the value of an asset that has been sold. This concept is the opposite of paper profit -- a paper profit only turns into a realized gain when you actually sell the security.

How Does a Realized Gain Work?

Let's assume you own 100 shares of Company XYZ that you purchased for $1,000. If the value of the investment increases to $5,000 but you sell the shares, your realized gain equals $4,000.

Why Does a Realized Gain Matter?

Capital gains are generally only taxable when the asset is actually sold (i.e., when the gains are realized). Changes in tax rates may influence the timing of an investor's decision to realize gains.

Ask an Expert about Realized Gain
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Realized Gain.
Be the first to ask a question

If you have a question about Realized Gain, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Realized Gain, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Realized Gain

By submitting this form you agree with our Privacy Policy

Share
close
Don't Know a Financial Term?
Search our library of 4,000+ terms