Paper Profit

Unrealized Capital Gain or Capital Loss in an investment or Portfolio. Paper profits and losses are calculated by comparing the current market prices of all stocks, bonds, mutual funds, and commodities in a portfolio to the prices at which those assets were originally bought. These profits or losses become realized only when the securities are sold.

Unrealized Gain (LOSS) in an investment or portfolio. Paper profits and losses are calculated by comparing the current market price to the investor's cost.

An increase in value above original cost or Basis that would be realized if the property were sold; however, the property is not offered for sale.
Example: Phyllis purchased a Tract of land for $100,000 that was recently appraised at $150,000. Her paper profit is $50,000.

unrealized gain from holding an item while its market value has increased. The amount equals the difference between the current market price and the initial cost. Examples are appreciation in value of inventory or securities. Paper profits are realized profits at the time of sale, at which point income statement recognition is given to them.