4.	MARKETABLE EQUITY SECURITIES

The Company accounts for its marketable securities in accordance with ASC Topic

321,

Investments - Equity Securities. ASC Topic

321

requires companies to measure equity investments at fair value, with changes in fair value recognized in net income. The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method, and interest and dividends on securities are included in non-operating income (expense).

Marketable equity securities are carried at fair value, with changes in fair market value included in the determination of net income. The fair market value of marketable equity securities is determined based on quoted market prices in active markets. See Note

– Fair Value of Financial Instruments for additional information regarding the valuation of marketable equity securities.

The following table sets forth cost, market value and unrealized gain on equity securities classified as available-for-sale as of

December 31, 2019

and

2018.

	201 9		201 8
	(in thousands)
Available-for-sale securities:
Fair market value	$	29,521	$	27,549
Cost		24,156		25,602
Unrealized gain	$	5,365	$	1,947

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of

December 31, 2019

and

2018.

	201 9		201 8
	(in thousands)
Available-for-sale securities:
Gross unrealized gains	$	7,808	$	5,668
Gross unrealized losses		2,443		3,721
Net unrealized gains	$	5,365	$	1,947

For the years ended

December 31, 2019,

2018

and

2017,

the Company recognized dividends of approximately

$1,309,000,

$1,171,000,

and

$999,000

in non-operating income in its statements of operations, respectively.

The following table shows the Company’s net realized gains during

2019,

2018

and

2017

on certain marketable equity securities.

	201 9		201 8		201 7
	(in thousands)
Realized gains:
Sale proceeds	$	2,984	$	1,044	$	6,833
Cost of securities sold		1,929		669		2,098

Realized gains	$	1,055	$	375	$	4,735

Realized gains, net of taxes	$	815	$	278	$	2,938

December 31, 2019,

the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were

$8,587,000

and

$2,443,000,

respectively. At

December 31, 2018,

the Company’s investments’ approximate fair value of securities in a loss position and related gross unrealized losses were

$12,399,000

and

$3,721,000,

respectively.

The market value of the Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of

December 31, 2019

and

2018,

the Company had outstanding borrowings of

$7,474,000

and

$11,281,000

under its margin account, respectively, which is reflected in accrued expenses. The interest rate on margin account borrowings was

2.40%

and

3.11%

as of

December 31, 2019

and

2018,

respectively.