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:
“It would not be an easy thing to bring the water all the way to the plain. They would have to organize a great coumbite with all the peasants and the water would unite them once again, its fresh breath would clear away the fetid stink of anger and hatred; the brotherly community would be reborn with new plants, the fields filled with to bursting with fruits and grains, the earth gorged with life, simple and fertile.”
—Jacques Roumain (1907–1945)
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When wedded to this goodly universe
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A simple produce of the common day.
MI, long before the blissful hour arrives,
Would chant, in lonely peace, the spousal verse
Of this great consummation—”
—William Wordsworth (1770–1850)