Summary: Gains and losses in investing can be realized or unrealized. Realized gains or losses occur upon asset sale, while unrealized ones reflect value changes before sale. Unrealized gains aren’t taxed until assets are sold, but they’re crucial for tax planning. Short-term gains are taxed as ordinary income, while long-term gains have lower rates based … Read more
The bid and ask price is generally used while trading assets like securities, commodities and other assets around the world. In some countries such as the UK, the ‘ask’ price is also known as the ‘offer’ price. The bid and ask price show the prices at which the market participants are willing to trade the … Read more
What is Risk-Return Profile? When we talk about the risk and return of an investment, we’re essentially examining the balance between the possible gains and the chance of losing money. In most cases, aiming for higher returns also means taking on higher risks. The amount of risk that an individual or an organization is able … Read more