Mark-to-market

The practice of always recognising the market price of a security or investment as the ‘correct’ price. Assumes that the market is always ‘right’ and in that sense subscribes to the efficient market dogma. Contrasts with the alternative approach of carrying illiquid investments at book cost, or at some theoretically correct valuation. Leads to more volatility in asset values and while certainly appropriate for trading portfolios does not command universal support.