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 first man, who after enclosing a piece of ground, took it into his head to say, this is mine, and found people simple enough to believe him, was the real founder of civil society.”
—Jean-Jacques Rousseau (1712–1778)
“The birth of the new constitutes a crisis, and its mastery calls for a crude and simple cast of mind—the mind of a fighter—in which the virtues of tribal cohesion and fierceness and infantile credulity and malleability are paramount. Thus every new beginning recapitulates in some degree man’s first beginning.”
—Eric Hoffer (1902–1983)