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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Realized Gain

Definition:

The gain you make when you actually sell a stock or asset at a profit. You may own stocks for years and daydream about what you'd do when you sold it, but until it's sold those gains are unrealized.

Important note: You can't be taxed on unrealized gains, but you will fo' sho' be taxed on the realized ones.

And yes, you'll realize it.

Example

You bought GE at 10 bucks a share. You've held it a few years, and now it's at $30. Nice big fat hefty gain.

When you sell, you will "realize a gain" of $20 a share.