Realized Gains

Realized gains refer to the profit made when an asset, like stocks or real estate, is sold for more than its purchase price. For example, if you buy a stock for $100 and later sell it for $150, you have a realized gain of $50. This gain is "realized" because it occurs only when you complete the sale, turning your investment into actual money. Unlike "unrealized gains," which represent potential profit while you still own the asset, realized gains have tax implications and affect your overall financial situation.