Assay

  

Categories: Insurance

In Snowmass, Colorado, there is a well-known slope designed for horrendous skiers called Assay Hill. In short, they try, fail, and slide on their asses alllll the way down the hill until they can give up and buy a beer. (It makes for some grrrreat people watching.) Unfortunately, that’s not what we’re talking about here.

In the real world, assay refers to the analysis of something to find out what it really consists of. For example, an assay may be performed by a jeweler to find out how pure the gold in your necklace is. Or an insurance company trying to figure out what it should charge a condominium complex seeking cataclysmic storm insurance.

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Finance: What is mark to market?2 Views

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Finance a la shmoop what is mark-to-market?

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alright well Google was private for a long time before it went public public [Google timeline appears]

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mutual funds bought the shares of the company when it was private, the company

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did a few later stage B C and D rounds before going public in 2004 and each

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iteration those subsequent rounds valued the company more highly so a mutual fund

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invested say 20 million dollars in the B round they would have seen the C round

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done at maybe double the valuation and while that mutual fund would then

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mark to market or mark up their twenty million dollar investment to now be

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worth forty million dollars even though the stock of goog was not yet publicly

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traded and then it came along the D round which was done at triple the [D round investment appears]

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valuation of the C round so then those shares of goog would have to be again

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marked up or marked to the new current market valuation which was three times

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the previous rounds valuation of 40 million aka a hundred twenty million

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bucks today eventually the company did go public and there was no longer need [Google stock price rises on graph]

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to mark its value to the market because well the market valued it basically

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every second of the trading day if you want to learn more about all this stuff

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well then you can just you know google it

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