Marked to Market

Posted in Finance, Accounting and Economics Terms, Total Reads: 586
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Definition: Marked to Market

Marked to market and mark to market are very closely related concepts. For understanding the marked to market concept, understanding marked to market is very important. Mark to market  is also known as the fair value accounting, in mark to market accounting all the assets and liabilities of the company is calculated by the fair value, that is their actual market prices. Mark to market values of the company changes day to day depending on the market conditions of the company.

Its main aim is to provide a true picture of a company's current financial situation. Marked to market is the next step of mark to market in which the gains and losses on a futures contract is settled every day.

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