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Economy
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Marginal Standing Facility
Marginal standing facility is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.
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Market Capitalization
Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks.
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Definition: Mark-to-market refers to the reasonable value of an account that can vary over a period depending on assets and liabilities. Mark-to-market provides a realistic estimate of a financial situation. It has been a part of the generally accepted accounting principles in the United States since 1990 and it is regarded as gold standards in some areas.
Mark-to-market can also be defined as an accounting tool used to record the value of an asset with respect to its current market price. The mark-to-market principle was largely adopted during the 20th century.
Description: Mark-to-market is a tool that can change the value on either side of a balance sheet, depending on the conditions of the market. For example, stocks that an individual holds in his/her demat account are marked to market every day. At the time of closing of market, the price assigned to each stock is the price that buyers and sellers decide at the end of the day.
Many people agree that mark-to-market reflects the true value of an asset as it is decided with respect to the current market price. It can be problematic at times as the value of assets may vary every second due to changing market conditions and because buyers and sellers keep coming in and going out in an irregular fashion.In mark-to-market, problems may occur when market-based measurements do not give the true value of an underlying asset.
Problems occur mainly when a company or financial institution is forced to calculate selling prices of its assets and liabilities during unfavourable conditions, such as a financial crisis.
Mutual fund schemes and stocks are marked to market on a daily basis.
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- STOCKSASSETSBALANCE SHEETDEMAT ACCOUNT
- LIABILITIESMARKET PRICEMARK TO MARKET
- PREV DEFINITION
Marginal Standing Facility
Marginal standing facility is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.
Read More
- NEXT DEFINITION
Market Capitalization
Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks.
Read More
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- BrexitIt is an abbreviation for the term “British exit”, similar to “Grexit” that was used for many years to refer to the possibility of Greece leaving the Eurozone. Brexit refers to the possibility of Britain withdrawing from the European Union (EU). The country will hold a referendum on its EU membership on June 23.Description: Why the Call for Referendum?When David Cameron became the prime miBrics the BRICS?BRICS is an acronym that started as BRIC in 2001, coined by Jim O’Neill (a Goldman Sachs economist) for Brazil, China, India, and Russia. Later in 2010, South Africa was added to become BRICS. Goldman Sachs claimed that the global economy will be dominated by the four BRIC economies by 2050. The main reason for such a claim was that China, India, Brazil, Russia, and South Africa were ra
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- What is mark-to-market risk in debt instruments?Debt mutual funds have to show notional losses or gains on their debt holdings even if the gains or losses are not actually realised. This is known as mark-to-market or MTM risk.
- What is mark to market risk in debt instruments?Debt mutual funds have to show notional losses or gains on their debt holdings even if the gains or losses are not actually realised. This is known as mark-to-market or MTM risk.
- What Sebi’s new rules for debt mutual funds mean for investorsThe market regulator had proposed certain changes in debt mutual funds to reduce the risk inherent in them.
- What Sebi’s new rules for debt mutual funds mean for investorsThe market regulator had proposed certain changes in debt mutual funds to reduce the risk inherent in them.
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