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:
“The simple opposition between the people and big business has disappeared because the people themselves have become so deeply involved in big business.”
—Walter Lippmann (1889–1974)
“Ideas are refined and multiplied in the commerce of minds. In their splendor, images effect a very simple communion of souls.”
—Gaston Bachelard (1884–1962)