This is the process of reflecting the latest prices at the end of a trading session in a portfolio of securities.

Let’s say for example 1,000 shares open at a price of £1 each but by the end of that day have closed at £1.50. Marking to market recognises the extra 50p per share, or £500, as a gain in the books of the holder despite the fact the shares have not been sold. When securities are listed on an exchange, getting a reliable mark to market price is straightforward. However where securities are not exchange traded this process can involve a degree of subjectivity and estimation.

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