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:
“Like many rich men, he thought in anecdotes; like many simple women, she thought in terms of biography.”
—Anita Brookner (b. 1938)
“Religion is the dream of the human mind. But even in dreams we do not find ourselves in emptiness or in heaven, but on earth, in the realm of reality; we only see real things in the entrancing splendor of imagination and caprice, instead of in the simple daylight of reality and necessity.”
—Ludwig Feuerbach (1804–1872)