The process of restating the carrying value of an asset or liability to equal its current market value. Under FAS 115, financial instruments held in trading accounts must be marked to market by increasing income to reflect unrealized gains or by decreasing income to reflect unrealized losses. Financial instruments categorized as available-for-sale ( AFS) under FAS 115 must also be marked to market but receive different accounting treatment. American Banker Glossary
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The process by which a position or portfolio is revalued based on the current day's closing price. Instead of being valued at the original purchase price the portfolio is valued at its current worth, reflecting any profit or loss which is not yet realized but which would be taken into account if the position were sold immediately.
Financial and business terms. 2012.