Paper Profit (Or Loss): If you own an asset that increases in value, any increase in value is a paper profit, or unrealized gain. If you sell the asset for more than you paid to buy it, your paper profit becomes an actual profit, or realized gain. The same relationship applies if the asset has lost value. You have a paper loss until you sell, when it becomes a realized loss. You owe no capital gains tax on a paper profit, though you use the paper value when calculating gains or losses in your investment portfolio, for example. The risk with a paper profit is that it may disappear before you realize it. On the other hand, you may postpone selling because you expect the value to increase further.

 

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Paper Profit (Or Loss): If you own an asset that increases in value, any increase in value is a paper profit, or unrealized gain. If you sell the asset for more than you paid to buy it, your paper profit becomes an . . . View Full Definition

Profit Margin: A company's profit margin is derived by dividing its net earnings, after taxes, by its gross earnings minus certain expenses. Profit margin is a way of measuring how well a company is doing, . . . View Full Definition

Profit Rate: Annual Earnings per share after taxes as a percentage of shareholders' equity capital per share at corporate book value at the beginning of the year.

Profit Forecast: A prediction of future profits of a company, which may affect investment decisions.