Mark-to-marking is a common method of valuing trading portfolios. If a share is bought for $3 and sold for $4, it has made a $1 profit. But trading companies might hold that $3 trade for years before they sell it. Those companies need to value the trades before they sell. They do this by valuing all trades against that day's closing price. So a $3 share might show a loss of $0.50 on a day when the price dips, even though it ultimately makes a profit.
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