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Paper Profit
Term category: General Investing
In 10 words or less: A profit that hasn't been realized yet (by selling the security).

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

StockJargon 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 until it's sold.  The stock still has a chance to go back down.

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