ABSTRACT
Paper gains (and losses). Realized gains (and losses). Accrued gains (and losses). These are inventions of the devil to bewilder investors who are willing to be confused. Worse, it is not only private investors who wander into this maze of concepts. Billions of dollars have been lost by institutions that have not marked to market their portfolios or assets and liabilities. Isn’t that a reassuring thought for the private investor who can use the concept that it is a paper loss he has, not a real loss?
