What is the difference between realized gains, and unrealized gains? So you are looking at your investment options, and find that the words realized gains an unrealized gains come up. Well this is something that really does affet the way you will want to invest your finances in.
For the best way to know the difference of what realized gains are and what unrealized gains are, it is time for a little bit of a vocabulary lesson.
Starting with capital gain. The reason we want to start here is we need to know where this all comes from. The capital gains are the gains you get from selling your assets for a cash value. The assets I am talking about are the stocks, bonds, CDs, properties of different sorts and precious metals.