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:
“On a level plain, simple mounds look like hills; and the insipid flatness of our present bourgeoisie is to be measured by the altitude of its “great intellects.””
—Karl Marx (1818–1883)
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—Amelia E. Barr (1831–1919)