MARK TO MARKET - MTM

  1. Measuring the fair value of accounts that can change over the period of time, such as assets and liabilities. It aims to provide a realistic appraisal on the present financial situation of a company or an institution.
  2. The procedure of marking or recording the price of an asset, account, or portfolio, instead of its acquisition price or book value. It is done to compute profits and losses, or to confirm margin requirements are being met.
  3. Act of knowing the net asset value (NAV) of a mutual fund, based on the most present market valuation. The value of mutual funds are marked on a daily basis at the market close.