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:
“‘Tis the gift to be simple ‘tis the gift to be free
‘Tis the gift to come down where you ought to be
And when we find ourselves in the place just right
‘Twill be in the valley of love and delight.”
—Unknown. ‘Tis the Gift to Be Simple.
AH. American Hymns Old and New, Vols. I–II. Vol. I, with music; Vol. II, notes on the hymns and biographies of the authors and composers. Albert Christ-Janer, Charles W. Hughes, and Carleton Sprague Smith, eds. (1980)
“At present the globe goes with a shattered constitution in its orbit.... No doubt the simple powers of nature, properly directed by man, would make it healthy and a paradise; as the laws of man’s own constitution but wait to be obeyed, to restore him to health and happiness.”
—Henry David Thoreau (1817–1862)