Investor Glossary-benchmarkInvestor Glossary-benchmarkInvestor Glossary-benchmarkInvestor Glossary-benchmarkInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Benchmark

The HTML to link to this page
 

A benchmark is a security or index against which the performance of other securities is judged. A benchmark is a goal to meet or to beat. Many investors use the S&P 500 Index as a benchmark for the US stock market. Their goal is for their investments to beat this benchmark. If their investments return more than the S&P 500 then the investor will have beaten the benchmark -- if the investor's efforts fall short then the investor will have failed to meet the benchmark. Investors may use any security or index as their benchmark. The theory is, if an investor's efforts don't at least equal the return provided by the benchmark, then the investor would be better off simply investing in the benchmark itself.



Rate this benchmark definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, quality assurance, 144a, VIX, limit order, inflation, labor relations, reverse mortgage, in escrow, diluted share, ex-dividend, wholly-owned subsidiary, APR, deferred tax, FTSE, 1031 exchange, ex-dividend date, per diem, open position, debt service coverage, retained earnings, margin rate, Zero Cost Collar, balance sheet, liquidity ratio, implied volatility, required rate of return, irrevocable trust, 401a, dividends payable, option premium, stock split, real GDP, Key Rate Duration, phantom income, FICO score, annual return, stock market close, 1035 exchange, cancelled check, command economy, EBITDA, deferred revenue, covered put, class C shares, current ratio, LIBOR, risk management, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use