Realized Gain

Realized Gain refers to the profit that occurs when an asset is sold for more than its original purchase price.

This gain is "realized" because it reflects an actual transaction rather than an unrealized gain, which would occur if the asset’s value has increased but has not yet been sold. For example, if an investor purchases stocks for $1,000 and later sells them for $1,500, the realized gain is $500. This amount is typically subject to taxation, depending on the holding period and applicable tax laws.