Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- MARK TO THE MARKET
When an investment is marked to the market, its value is adjusted to reflect the current market price. In the case of mutual funds, for example, marking to the market means that a fund's net asset value (NAV) is recalculated each day based on the closing prices of the fund's underlying investments. With a margin account, the value of the investments in the account is recalculated continuously to determine whether it meets margin requirements. If that value falls below the minimum specified, you get a margin call and must add assets to your account to return it to the required level.Back