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Unformatted text preview: Trading Investments Held for short time and then sold Gain or loss recorded Dividend revenue may also be received At year-end, trading investments are adjusted to equal their market value Results in an unrealized gain or loss Unrealized Gains & Losses Difference between market price and cost of investment at year-end Unrealized investment has not been sold Realized vs. Unrealized Realized Investment sold to third party Gain or loss = difference between selling price and cost Word realized usually dropped from title Unrealized Company still owns investment Gain or loss = difference between market value and cost Word unrealized is kept in account title...
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