A Decrease in the Fair Market Value of a Security

question 63

Multiple Choice

A decrease in the fair market value of a security that has not yet been realized through an actual sale of the security is called a(n) :

• A)Contingent loss
• B)Realizable loss
• C)Unrealized loss
• D)Capitalized loss
• E)Market loss

---

Definitions:

Social Security Tax

Taxes levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivor benefits.

Taxable Income

The amount of an individual's or corporation's income used to determine how much tax is owed to the government.

Marginal Tax Rate

The percentage of tax applied to your income for every tax bracket in which you qualify.

Average Tax Rate

The fraction of an individual's total income that is paid in taxes, calculated by dividing the total taxes paid by total income.