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The term ?mark to market? refers to an accounting method used to measure the value of assets based on current market conditions. Mark to market accounting seeks to determine the real value of assets based on what they could be sold for right now.

Mark is the midpoint between the bid and the ask.

The term mark to market refers to a method under which the fair values of accounts that are subject to periodic fluctuations can be measured, i.e., assets and liabilities. The goal is to provide time to time appraisals of the current financial situation of a company or institution.

Mark to market (MTM) is an accounting method whereby assets and liabilities are recorded at their current market value. In other words, if a company had to liquidate its assets and pay off all its debts today, mark to market accounting would give you an accurate picture of how much it would be worth.

Mark-to-market losses can occur when financial instruments held are valued at the current market value. If a security was purchased at a certain price and the market price later fell, the holder would have an unrealized loss, and marking the security down to the new market price would result in the mark-to-market loss.

You can calculate MTM by multiplying the number of units by their current market price or fair value per unit. The formula is: MTM Value = Number of Units × Current Market Price or Fair Value per Unit.

It dates back to 1943 and states that commissions, markups, and markdowns of more than 5% are prohibited on standard trades, including over-the-counter and stock exchange listings, cash sales, and riskless transactions. Financial Industry Regulatory Authority (FINRA).

If an investor owns 10 shares of a stock purchased for $4 per share, and that stock now trades at $6, the "mark-to-market" value of the shares is equal to (10 shares * $6), or $60, whereas the book value might (depending on the accounting principles used) equal only $40.