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Paper Profit - Definition
Below, you'll find a definition of this investing term...

Definition: A profit that occurs when you're still holding the stock that has appreciated in value.  Commonly called "unrealized gain."

TeenAnalyst Advice: If your stock doubles without you selling it, you'll have 100% in paper profit.  You don't get to actually call it a gain until you sell it.  Once you sell it, you have to pay taxes on it.

Never consider a paper profit a real profit.  Only do so when you sell it.

 

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