Accounting Dictionary

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Unrealized Loss

Definition: An unrealized loss is a decline in the value of an asset that you have not yet sold. If you sell the asset, it becomes a realized loss.

For example, ABC Company owns an investment that cost $100,000, but which now has a market value of $80,000. ABC therefore has an unrealized loss of $20,000.

Similar Terms

An unrealized loss is also known as a paper loss.