REALIZED GAIN Meaning and
Definition
-
A realized gain is a financial term that signifies the increase in the value of an investment when it is sold or disposed of. It is the difference between the amount received from the sale and the original cost or purchase price of the asset. This gain is "realized" as it becomes actual and is not merely a paper profit.
Realized gains are typically realized when an investor sells a stock, bond, real estate property, or any other kind of investment for a higher price than what they paid to acquire it. It can also occur when an investor receives dividends or interest from an investment. The realized gain is calculated by subtracting the original cost or basis of the investment from the selling price or fair market value at the time of the sale.
This gain is of utmost importance, especially for tax purposes, as it determines the amount of tax liability that will be incurred on the investment return. Depending on the jurisdiction and holding period, realized gains may be subject to capital gains tax. However, if an investment is sold at a loss, it results in a realized loss instead of a gain.
Understanding and keeping track of realized gains is crucial for investors as it helps in assessing the performance of their investments, making informed financial decisions, and accurately reporting their taxable income.
Common Misspellings for REALIZED GAIN
- eealized gain
- dealized gain
- fealized gain
- tealized gain
- 5ealized gain
- 4ealized gain
- rwalized gain
- rsalized gain
- rdalized gain
- rralized gain
- r4alized gain
- r3alized gain
- rezlized gain
- reslized gain
- rewlized gain
- reqlized gain
- reakized gain
- reapized gain
- reaoized gain
- realuzed gain
Etymology of REALIZED GAIN
The word "realized gain" has its etymology rooted in financial and accounting terminology. Here's a breakdown of its etymology:
1. Realize: The term "realize" comes from the Old French word "realiser", which means "to make real" or "to convert into reality". It originated from the Latin word "realis", which means "real" or "actual".
2. Gain: The term "gain" has Middle English and Anglo-Norman origins. It can be traced back to the Old French word "gaigner", meaning "to earn" or "to acquire". This, in turn, evolved from the Late Latin word "ganare", which means "to gain" or "to profit".
