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:
“There was a deserted log camp here, apparently used the previous winter, with its “hovel” or barn for cattle.... It was a simple and strong fort erected against the cold, and suggested what valiant trencher work had been done there.”
—Henry David Thoreau (1817–1862)
“The work of Henry James has always seemed divisible by a simple dynastic arrangement into three reigns: James I, James II, and the Old Pretender.”
—Philip Guedalla (1889–1944)