3 definitions of Mark to Market
•The comparison and adjustment of a position to reflect current market values. Mark to market is conducted on stocks that were sold short, uncovered calls and puts and whenissued securities. The adjustment may cause a margin call to be issued. •The daily value of a contract by calculating the gain or loss in cash flows over the term of the contract with relation to the current market value of the position. •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 decreasing income to reflect unrealized losses. Financial instruments categorized as available-forsale (AFS) under FAS 115 must also be marked to market but receive different accounting treatment.