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 ordinary literary man, even though he be an eminent historian, is ill-fitted to be a mentor in affairs of government. For ... things are for the most part very simple in books, and in practical life very complex.”
—Woodrow Wilson (1856–1924)
“The prostitute is the scapegoat for everyone’s sins, and few people care whether she is justly treated or not. Good people have spent thousands of pounds in efforts to reform her, poets have written about her, essayists and orators have made her the subject of some of their most striking rhetoric; perhaps no class of people has been so much abused, and alternatively sentimentalized over as prostitutes have been but one thing they have never yet had, and that is simple legal justice.”
—Alison Neilans. “Justice for the Prostitute—Lady Astor’s Bill,” Equal Rights (September 19, 1925)