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Mark-to-market: Difference between revisions
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Now, what would be the mark-to-market view of the average North London property if all 1.5m owners decided to sell at the same time? We postulate quite a lot less than £824,540. | Now, what would be the mark-to-market view of the average North London property if all 1.5m owners decided to sell at the same time? We postulate quite a lot less than £824,540. | ||
===Cost=== | |||
An alternative — there are no good alternatives, by the way: accounting is a necessarily historical exercise and is logically unable to predict the future — is to stick with cost until the point where you liquidate your position. This is unfun for “talented” hedge fund managers who are generating book profits in a rising market. It also incentivises “bad” managers to sit on crappy investments and avoid selling them to realise a loss. | |||
===Mark-to-model=== | ===Mark-to-model=== | ||