ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Insurance Videos 162 videos
Market manipulation is manipulation of the, uh... market. Like...illegally. Yeah, any sort of "scheme" is probably something you want to avoid.
When a bond is secured, it means it's protected, i.e. there are assets that would be forfeited if repayment is not made. When it's unsecured... it'...
What are Angel Investors and Seed Funds? Angel investors provide the funds for small start-ups. They are usually family and friends (not institutio...
Finance: What is mark to market? 2 Views
Share It!
Description:
What is mark to market? Is it when Mark Zuckerberg writes the stock market a letter, thanking it for being a friend?
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Company Valuation
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Insurance
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
Transcript
- 00:00
Finance a la shmoop what is mark-to-market?
- 00:06
alright well Google was private for a long time before it went public public [Google timeline appears]
- 00:12
mutual funds bought the shares of the company when it was private, the company
- 00:16
did a few later stage B C and D rounds before going public in 2004 and each
- 00:22
iteration those subsequent rounds valued the company more highly so a mutual fund
Full Transcript
- 00:27
invested say 20 million dollars in the B round they would have seen the C round
- 00:32
done at maybe double the valuation and while that mutual fund would then
- 00:36
mark to market or mark up their twenty million dollar investment to now be
- 00:42
worth forty million dollars even though the stock of goog was not yet publicly
- 00:46
traded and then it came along the D round which was done at triple the [D round investment appears]
- 00:50
valuation of the C round so then those shares of goog would have to be again
- 00:56
marked up or marked to the new current market valuation which was three times
- 01:01
the previous rounds valuation of 40 million aka a hundred twenty million
- 01:06
bucks today eventually the company did go public and there was no longer need [Google stock price rises on graph]
- 01:11
to mark its value to the market because well the market valued it basically
- 01:16
every second of the trading day if you want to learn more about all this stuff
- 01:19
well then you can just you know google it
Related Videos
GED Social Studies 1.1 Civics and Government
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...