mark-to-market
Real-time asset valuation
Mark-to-market is an accounting method that values assets and liabilities at their current market price rather than their original purchase price or book value.
This approach provides a more accurate snapshot of an institution's financial position but can create volatility when markets swing dramatically.
The practice became controversial during the 2008 financial crisis when plummeting asset values forced banks to report massive paper losses.
The fund's mark-to-market losses triggered margin calls from its lenders.
Reasonable exchange price
- financial statementsFormal records of transactions
- balance sheetAssets-liabilities-equity report
- GAAPFinancial reporting conventions
- revaluationReassessing something's worth
liabilities · equity · book value · impairment · write-down · audit · compliance
Contracts for future delivery
- optionsAvailable courses of action
- swapsMutual trades
- hedgingNoncommittal maneuvering
- margin callBroker's request for funds
collateral · clearing · settlement · exposure
Collected works or assets
- securitiesTradeable financial assets
- stocksOwnership stakes or inventory
- bondsTies that unite
- liquidityConvertibility to cash
volatility · position · profit and loss · exchange · broker-dealer
Final traded value daily
fair value
Reasonable exchange price
- financial statementsFormal records of transactions
- balance sheetAssets-liabilities-equity report
- GAAPFinancial reporting conventions
revaluation · liabilities · equity · book value · impairment · write-down · audit · compliance
futures
Contracts for future delivery
margin call · collateral · clearing · settlement · exposure
portfolio
Collected works or assets
- securitiesTradeable financial assets
- stocksOwnership stakes or inventory
- bondsTies that unite
liquidity · volatility · position · profit and loss · exchange · broker-dealer
closing price
Final traded value daily
- Valuationfair value, book value, appraised value, assessed value, asset value
mark-to-marketbook value
Asset minus accumulated depreciation
cost basis · acquisition cost · par value · nominal value · face value
mark, market, marker, marked, remark, remarkable, marketing, marking, supermarket