Mark-To-Market N.
/ˌmɑːrk tə ˈmɑːrkɪt/
Definitions
- (n.) An accounting method that values assets and liabilities at their current market price rather than at historical cost.
The company uses a mark-to-market system to reflect real-time asset values on its balance sheet.
- (n.) The process of daily adjustment of the value of securities or contracts to reflect current market conditions, often used in derivatives trading.
Mark-to-market procedures ensure that gains and losses are recorded every day in the futures market.
Forms
- mark-to-market n.
- mark-to-market
Related terms
See also
Commentary
Commonly applied in financial regulation and accounting law, mark-to-market offers transparency but may introduce volatility; drafters should clarify the valuation date and applicable market in contracts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.