Mark to Market

Mark to Market is a term used to describe an accounting method that measures accounts that change often based on the current market price. It can become volatile if market prices fluctuate greatly or change unpredictably. The goal of mark-to-market is to come up with the most accurate appraisal of a company’s finances. Mark-to-market accounting can change values on the balance sheet as market conditions change. It is similarly used to price futures contracts, which is very important for investors who trade commodities with margin accounts.