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TeachMeFinance.com - explain paper profit paper profit -- an increase in the value of property or a security still held. Paper profits become realized profits only when the property or security is sold. historic definition... Paper profits -- Profits in transactions not yet closed and consequently not yet in hand. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.