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:
“Religion is the dream of the human mind. But even in dreams we do not find ourselves in emptiness or in heaven, but on earth, in the realm of reality; we only see real things in the entrancing splendor of imagination and caprice, instead of in the simple daylight of reality and necessity.”
—Ludwig Feuerbach (18041872)
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—David Hume (17111776)