Simple Example
Example: If an investor owns 10 shares of a stock purchased for $4 per share, and that stock now trades at $6, the "mark-to-market" value of the shares is equal to (10 shares * $6), or $60, whereas the book value might (depending on the accounting principles used) only equal $40.
Similarly, if the stock decreases to $3, the mark-to-market value is $30 and the investor has lost $10 of the original investment.
Read more about this topic: Mark-to-market Accounting
Famous quotes containing the word simple:
“He prayed more deeply for simple selflessness than he had ever prayed before—and, feeling an uprush of grace in the very intention, shed the night in his heart and called it light. And walking out of the little church he felt confirmed in not only the worth of his whispered prayer but in the realization, as well, that Christ had become man and not some bell-shaped Corinthian column with volutes for veins and a mandala of stone foliage for a heart.”
—Alexander Theroux (b. 1940)
“Whose are the truly labored sentences? From the weak and flimsy periods of the politician and literary man, we are glad to turn even to the description of work, the simple record of the month’s labor in the farmer’s almanac, to restore our tone and spirits.”
—Henry David Thoreau (1817–1862)