Mark-to-market Accounting - Simple Example

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.

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