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LSDefine
Simple English definitions for legal terms
paper loss
Read a random definition: objection in point of law
A quick definition of paper loss:
A paper loss is when something you own, like a house or a stock, decreases in value and you lose money on it. It's called a paper loss because you haven't actually sold the thing yet, so you haven't really lost any money. But if you do sell it for less than you bought it for, then the paper loss becomes a real loss.
A more thorough explanation:
Definition: A decrease in value of an asset that is only on paper and has not been realized through a sale or disposition.
- Stocks that have decreased in value since they were purchased, but have not been sold.
- A house that has decreased in value since it was purchased, but has not been sold.
These examples illustrate how a paper loss is a decrease in value that has not yet been realized through a sale or disposition. The value of the asset has decreased, but the owner has not yet experienced an actual loss of money.