Example: If an investor owns 100 shares of a stock purchased for $40 per share, and that stock now trades at $60, the "mark-to-market" value of the shares is equal to (100 shares × $60), or $6,000, whereas the book value might only equal $4,000. [Source: Wikipedia]
This accounting method is also being held responsible for some of the financial crisis. Doesn't Mark-to-Market sound just like having 40 dollars in your checking account, but you will have twenty more dollars in there in two weeks but you go ahead and write a check for $60 to cover a bill right now? I think the American public understands what is going on. That extra $20 dollars did not come in and the check bounced.
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