No friends and family dealing here. It was a fair market deal. The handshake was done with a fully extended arm. no hugging. The term implies that there was nothing discounted or special about the terms of a given deal. It was ..."market."
Related or Semi-related Video
Finance: What is mark to market?2 Views
Finance a la shmoop what is mark-to-market?
alright well Google was private for a long time before it went public public [Google timeline appears]
mutual funds bought the shares of the company when it was private, the company
did a few later stage B C and D rounds before going public in 2004 and each
iteration those subsequent rounds valued the company more highly so a mutual fund
invested say 20 million dollars in the B round they would have seen the C round
done at maybe double the valuation and while that mutual fund would then
mark to market or mark up their twenty million dollar investment to now be
worth forty million dollars even though the stock of goog was not yet publicly
traded and then it came along the D round which was done at triple the [D round investment appears]
valuation of the C round so then those shares of goog would have to be again
marked up or marked to the new current market valuation which was three times
the previous rounds valuation of 40 million aka a hundred twenty million
bucks today eventually the company did go public and there was no longer need [Google stock price rises on graph]
to mark its value to the market because well the market valued it basically
every second of the trading day if you want to learn more about all this stuff
well then you can just you know google it
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