Realized Loss
When assets are sold below cost
Realized loss is the actual loss attained from closing a position and experiencing the loss. Whilst a position may be negative in terms of money, the loss is not actually realized until the position is closed.
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To continue learning and advancing your career, check out these additional helpful WSO resources:
- Retained Earnings
- Fraud Triangle
- Accounts Receivable Turnover Ratio
- Marginal Cost Formula
- Nash Equilibrium
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