Impact-adjusted valuation and the criticality of leverage

Impact-adjusted valuation and the criticality of leverage

Stock market

Mark-to-market or ‘fair-value’ accounting is standard industry practice. It consists of assigning a value to a position held in a financial instrument based on the current market clearing price for the relevant instrument or similar instruments. This is commonly justified by the theory of efficient markets, which posits that at any given time market prices faithfully reflect all known information about the value of an asset. However, mark-to-market prices are only marginal prices, reflecting the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here