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Kayla Thorne
on Nov 13, 2024

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Any difference between the fair market values of the securities and their cost is a realized gain or loss.

Realized Gain

The profit earned from the sale of an asset when the sale price exceeds the purchase price, which has become actual rather than just theoretical.

Fair Market Values

The estimated price at which a property or asset would trade in a competitive auction setting.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

  • Recognize the difference between realized and unrealized gains or losses and their impact on financial statements.
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TJ
Trinitee JohnsonNov 16, 2024
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