Mark-to-Market
Mark-to-market (MTM) is an accounting method that values assets and liabilities at their current market value. This method is used to measure the performance of investments and to determine the value of a company’s assets and liabilities. It is also used to calculate the net worth of a company. The mark-to-market method is used in many industries, including banking, finance, and investments.
History of Mark-to-Market
The mark-to-market method was first introduced in the early 1900s as a way to measure the performance of investments. It was initially used by banks and other financial institutions to measure the value of their investments. Over time, the method has been adopted by other industries, such as the insurance and real estate industries. The method is now widely used to measure the performance of investments and to determine the value of a company’s assets and liabilities.
Comparison Table
| Method | Value |
|---|---|
| Mark-to-Market | Current Market Value |
| Cost Basis | Original Cost |
| Fair Value | Estimated Market Value |
Summary
Mark-to-market is an accounting method that values assets and liabilities at their current market value. It is used to measure the performance of investments and to determine the value of a company’s assets and liabilities. The method has been adopted by many industries, including banking, finance, and investments. For more information about mark-to-market, you can visit websites such as Investopedia, The Balance, and the Financial Times.
See Also
- Cost Basis
- Fair Value
- Accounting
- Investments
- Asset Valuation
- Financial Statements
- Balance Sheet
- Cash Flow Statement
- Income Statement
- Cash Flow
