i don’t understand this stuff, so sometime help me out please. this chart represents “unrealized losses” on long term securities. rather than actual money loss, does this mean the valuation of the securities they are holding have dropped? or something else? unrealized Los just means the assets they hold have less value in this current moment, yeah?
You are entirely correct. Unrealised vs realised gains/losses are important for tax purposes, since the latter count towards taxes while the former don’t.
i don’t understand this stuff, so sometime help me out please. this chart represents “unrealized losses” on long term securities. rather than actual money loss, does this mean the valuation of the securities they are holding have dropped? or something else? unrealized Los just means the assets they hold have less value in this current moment, yeah?
Yeah, so long as nobody sells those assets the loss is “unrealized”.
Like… Your neighbor buys their house for 200,000. They watch the housing market in the are and keep track of the estimated sale price for their house.
If this year, their house could potentially sell for 250,000 but they don’t sell. You could think of it as an unrealized “gain”.
If next year, their house could potentially sell for 190,000 but they don’t sell. You could think of it as an unrealized “loss”.
alright, thank you for the explanation :D
You are entirely correct. Unrealised vs realised gains/losses are important for tax purposes, since the latter count towards taxes while the former don’t.