What does Unrealized Gain (Loss) mean?
Unrealized Gain (Loss) represents unrealized gains (losses) on investment securities owned by a company. Securities other than long-term investments for controlling purposes are divided into two categories, securities available for sale and securities held to maturity.
Securities available for sale are valued at market value and unrealized gains (losses) are included as a part of comprehensive income according to SFAS 130. Such gains (losses) may be reported as comprehensive income but are considered not available for distribution to shareholders and are directly included in shareholders’ equity. Securities held to maturity are securities that are maintained for their defined term, rather than sold prior to the date of vesting.
Unrealized Gain (Loss) includes accumulated unrealized gains/losses on securities available for sale, which is a part of comprehensive income