An active market is characterized by frequent and high-volume transactions of assets within a particular class, providing readily available and up-to-date pricing information.
An important accounting practice designed to manage the impact of volatile financial instruments on a company's profit and loss account through the use of financial derivatives to hedge against risk.
Marking to market, also known as fair value accounting, is the practice of valuing financial assets and liabilities according to their current market prices. It is a commonly applied method in accounting and finance but remains controversial due to its impact on financial statements.
A regulated futures contract is a financial agreement that ensures daily settlement of gains or losses through margin accounts, and it must be traded on a qualified exchange following specified rules.
