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Mark-to-market: Difference between revisions
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{{anat|isda|{{image|marky mark|png|}}}}{{d|{{PAGENAME}}|/mɑːk tuː ˈmɑːkɪt/|n., v., adj|}} | {{anat|isda|{{image|marky mark|png|}}}}{{quote|{{d|{{PAGENAME}}|/mɑːk tuː ˈmɑːkɪt/|n., v., adj|}} | ||
1. The [[market value]] is the value of an [[asset]] by reference to its [[market price]] — what the market will pay for it at the particular point in time, rather than by evaluating the fundamental components of the asset. The latter involves ineffable wisdom, technical analysis and cojones of steel — and at times of stress is apt to make an owner feel aggrieved at the world; the former is a bit like sticking something on eBay — hence, “[[Mark to market|marking-to-market]]” — and yields an instant answer if not necessarily gratification. | 1. The [[market value]] is the value of an [[asset]] by reference to its [[market price]] — what the market will pay for it at the particular point in time, rather than by evaluating the fundamental components of the asset. The latter involves ineffable wisdom, technical analysis and cojones of steel — and at times of stress is apt to make an owner feel aggrieved at the world; the former is a bit like sticking something on eBay — hence, “[[Mark to market|marking-to-market]]” — and yields an instant answer if not necessarily gratification. | ||
2. A British born serial award-winning Chocolatier and proprietor of ''Demarquette Fine Chocolates''. With over 70 Gold awards under his belt and Category winner of several esteemed awards over the years, Marc Demarquette has raised the bar higher and higher, being [[Results-driven|driven by results]] with no better way of demonstrating his excellence than winning [[awards]] for his creations and his clients. Also a fully trained facilitator and speaker. | 2. A British born serial award-winning Chocolatier and proprietor of ''Demarquette Fine Chocolates''. With over 70 Gold awards under his belt and Category winner of several esteemed awards over the years, Marc Demarquette has raised the bar higher and higher, being [[Results-driven|driven by results]] with no better way of demonstrating his excellence than winning [[awards]] for his creations and his clients. Also a fully trained facilitator and speaker. Relationship with famous French financial markets chocolatiers ''[[Maple, Maple et Cie|Les Frères Maple]]'' unclear. }} | ||
===As a method of portfolio valuation=== | |||
“Marking-to-market” is a method of accounting to value an asset. In the absence of a better idea, it is to treat the value of something you have ''not'' sold as if you ''had'' sold it. Regular readers will not be surprised to hear that this can lead to confusion, disappointment and colossal regret. They may, however, be surprised to hear there have been many financial professionals — ones who, similarly, should not have be surprised to hear that — who, in fact, ''have'' been surprised to hear it, and have had the frights of their lives finding it out the hard way over the 30 years since mark-to-market accounting became ''de rigueur'' — re-popularising itself in the hands of accounting wizards like [[Jeff Skilling]] and [[Andrew Fastow]] in the 1990s, President Roosevelt having banned it, at the [[SEC|SEC’]]<nowiki/>s urging, as long ago as 1938. | “Marking-to-market” is a method of accounting to value an asset. In the absence of a better idea, it is to treat the value of something you have ''not'' sold as if you ''had'' sold it. Regular readers will not be surprised to hear that this can lead to confusion, disappointment and colossal regret. They may, however, be surprised to hear there have been many financial professionals — ones who, similarly, should not have be surprised to hear that — who, in fact, ''have'' been surprised to hear it, and have had the frights of their lives finding it out the hard way over the 30 years since mark-to-market accounting became ''de rigueur'' — re-popularising itself in the hands of accounting wizards like [[Jeff Skilling]] and [[Andrew Fastow]] in the 1990s, President Roosevelt having banned it, at the [[SEC|SEC’]]<nowiki/>s urging, as long ago as 1938. | ||
====How it works==== | ====How it works==== | ||