Realized gains and losses only occur when the security is sold for more or less than the original cost.

Name: Realized gains and losses only occur when the security is sold for more or less than the original cost.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

Realized gains and losses refer to the actual profit or loss generated from the sale of a security compared to its original cost. Thus, they only occur when the security is sold. If the security is held but not sold, any changes in its value are unrealized gains or losses.

Realized Gains and Losses Only Occur When the Security Is