Marked-To-Market
/ˈmɑrkɪd tu ˈmɑrkɪt/
Definitions
- (adj.) Relating to the practice of valuing assets and liabilities at their current market price rather than historical cost for accounting or legal purposes.
The company's marked-to-market accounting revealed significant fluctuations in asset values during the financial crisis.
- (v.) To adjust the value of an asset or liability to its current market price, usually at the end of a trading day or reporting period.
The broker marked the portfolio to market to reflect the latest closing prices.
Forms
- marked-to-market
- marking-to-market
Related terms
See also
Commentary
Marked-to-market accounting provides timely valuation reflecting market conditions but may introduce volatility in financial statements.
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.