Account Value, Profits, and Losses

What this video covers

• How an account statement reflects current market value and calculates a paper gain or loss
• The difference between an unrealized gain or loss on an open position and a realized gain or loss after a sale or disposition
• Why unrealized gains appear on statements but are not taxable events
• When a realized gain becomes taxable and how it appears on confirmations and year-end Form 1099-B tax documents
• How cost basis serves as the starting amount for measuring a taxable gain or loss
• The difference between covered securities, where the broker-dealer tracks and reports basis, and non-covered securities, where the investor does
• The exam trap that a rising account value without a sale means no taxable event has occurred