Mark-to-Market

Definition

The practice of valuing assets at their current market price rather than their historical cost. Mark-to-market accounting provides a more timely view of portfolio value but can introduce volatility, particularly for intangible-heavy investments where market prices may fluctuate significantly in response to sentiment and information flow.

Related Terms

Management Buyout (MBO) Management Fee Mark-Up Pricing Market Approach (Valuation) Mezzanine Financing

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