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What are unrealized gains and losses on investments?

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What are unrealized gains and losses on investments?

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A. Unrealized gains and losses are those that result from changes in the market value of investments and have not resulted from a transaction. For example, an unrealized gain occurs when a security increases after an investor buys it, but has yet to sell it. An unrealized loss occurs when a security decreases after an investor buys it, but has yet to sell it. Gains or losses are said to be “realized” when a security is sold.

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