Mark-To-Market Losses

Mark-To-Market Losses
A loss generated through an accounting entry rather than the actual sale of a security. 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 results in the mark-to-market loss. Mark-to-market accounting is part of the concept of fair-value accounting which attempts to give investors more transparent and relevant information.

For example, if a company holds securities that they bought as an investment and the market value of the securities fall, then once they assign the new market value to their asset they would take a mark-to-market loss on their holding even if they didn't sell it. Mark-to-market attempts to give investors a more accurate picture of the value of a company's assets.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • mark to market — A method of accounting. Marking to market means that the company s balance sheet shows loans and debt instruments at their fair value, which may be higher or lower than cost. Any profits or losses due to any change in value will go to the profit… …   Law dictionary

  • mark-to-market — A method of accounting. Marking to market means that the company s balance sheet shows loans and debt instruments at their fair value, which may be higher or lower than cost. Any profits or losses due to any change in value will go to the profit… …   Law dictionary

  • Mark-to-market accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • mark-to-market — The IRS s practice of calculating gains and losses on open futures positions as of the end of the tax year. In other words, taxpayers open futures positions are marked to the market price as of the end of the tax year and taxes are assessed as if …   Financial and business terms

  • mark to market — The process of restating the carrying value of an asset or liability to equal its current market value. Under FAS 115, financial instruments held in trading accounts must be marked to market by increasing income to reflect unrealized gains or by… …   Financial and business terms

  • Mark To Management — The theory that a good, asset/liability or service can be assigned a fair market value based not necessarily on current or historical market price but rather on the holder s assumption of what the good, asset/liability or service could… …   Investment dictionary

  • Mark To Model — The pricing of a specific investment position or portfolio based on internal assumptions or financial models. This contrasts with traditional mark to market valuations, in which market prices are used to calculate values as well as the losses or… …   Investment dictionary

  • Mark Spitznagel — at his place in Northport Point, Mich. (The Wall Street Journal, June 17, 2009,[1] August 24, 2010[2]) …   Wikipedia

  • Mark Cuban — with the Larry O Brien trophy at the Dallas Mavericks championship parade Born July 31, 1958 (1958 07 31) (age 53) Pittsburgh, Pennsylvania, U.S …   Wikipedia

  • Mark Pittman — Born James Mark Pittman Nationality American Alma mater University of Kansas Occupation Financial journalist …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”