student
450 Points
Joined July 2010
Hello Narendrabhai,
Book Profit is just unrealised gain or unrealised profit or paper gain or paper profit.
A gain on an investment that has not yet been realized. That is, book profit occurs when the current price of a security is higher than the price the holder paid for it, but the holder still owns the security. As a result, there is the possibility that the book profit might be erased if the price goes back down. A book profit represents an increase in one's net worth , but it may or may not affect one's lifestyle. Under most circumstances, one is not taxed for book profit; the government waits until gains and losses are realized.
It induces a sense of well-being, without bringing in any tangible profit. It is only in the verbal use of the term, i.e. to sell shares when they have appreciated in price. That real profit comes. Hence the stock market adage: Unbooked profit is only book profit.
REGARDS
RAGHAV