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paper loss

paper loss

1 6.1
A fall in an investment's value that is only on paper because you have not sold it
  • noun
  • /ˈpeɪpər lɔs/
  • Specialized
translation icon : pérdida en papel
  • The company's stock dropped almost 50 percent in two days, causing paper loss of more than $140 million, and has not recovered.
  • billion in paper losses

Examples

  • 'A one-day paper loss of around $1 bn.'

  • Other investors paid as much as $122 a share for LinkedIn that day and were left with paper losses.

    Blog text (10)
  • But because sanctions have largely kept the country from developing its huge natural gas reserves, it will suffer only a paper loss; if Iran manages to export its gas in the future, it will receive less revenue than previously thought.

    Academic text (2011)
  • They decided to just sit tight, realizing that their losses were only paper losses so long as they didn't cash in.

  • If you had sold short 100 shares of eBay just a month ago, you would have a paper loss today of $12,000.

Antonyms

paper profit
  • Specialized
1 5.1

An increase in how much an investment is worth before you sell it

How Real

paper loss
  • Specialized
1 6.1

Surface Forms

paper loss singular
paper losses plural

Morphology

paper + loss

The sense 'an unrealized loss' depends on a figurative use of 'paper' meaning 'on records/on paper' rather than the literal material, so the connection to 'loss' is partially compositional but requires knowledge of this extended use. A B1 learner who only knows 'paper' (physical sheets) and 'loss' will likely not predict the financial, unrealized meaning without prior exposure, making it partially but not fully transparent.

Etymology

Paper loss comes from the simple image of a loss shown on paper — a number written in an account or record that has gone down. Because nothing has been sold, the loss is only 'on paper' and not a real loss of money.