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:
“Your apple face, the simple crèche
Of your arms, the August smells
Of your skin. Then I sorted your clothes
And the loves you had left, Elizabeth,
Elizabeth, until you were gone.”
—Anne Sexton (1928–1974)
“I would like a simple life
yet all night I am laying
poems away in a long box.
It is my immortality box,
my lay-away plan,
my coffin.”
—Anne Sexton (1928–1974)