How Shareholder Gains Can Be Secretly Wiped Out

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As mark-to-market institutions, big banks can often experience wild changes in asset values as financial markets gyrate. These swings in value are recorded as "other comprehensive income" and affect shareholder equity. 

In this segment of The Motley Fool's everything-financials show Where the Money Is, banking analysts Matt Koppenheffer and David Hanson explain this concept and why it's important to bank investors.

The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

To view Where the Money Is in its entirety, click here!

You can follow David and Matt on Twitter.

The article How Shareholder Gains Can Be Secretly Wiped Out originally appeared on

David Hanson owns shares of JPMorgan Chase. Matt Koppenheffer owns shares of Bank of America and JPMorgan Chase. The Motley Fool recommends Bank of America and Wells Fargo and owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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