Benchmark


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.

Benchmark

The performance of a predetermined set of securities, used for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.

Benchmark

A standard against which a security's performance is compared. A benchmark is usually an index of securities of the same or similar class. Stocks are usually compared against stocks; bonds against bonds, etc. Another type of benchmark considers securities according to industry: a telecommunications stock may be compared to other telecommunications stocks. Likewise, mid-cap securities may be benchmarked against other mid-cap securities. Some indices, such as the Dow Jones Industrial Average and the S&P 500, are considered to be benchmarks for the wider economy.

benchmark

A standard by which something is measured. For example, bond yields are generally compared to benchmark yields on U.S. Treasury securities of similar maturity. Mutual fund performance is often compared to changes in the Standard & Poor's 500 Stock Index.

Benchmark.

An investment benchmark is a standard against which the performance of an individual security or group of securities is measured.

For example, the average annual performance of a class of securities over time is a benchmark against which current performance of members of that class and the class itself is measured.

When the benchmark is an index tracking a specific segment of the market, the changing value of the index not only measures the strength or weakness of its segment but is the standard against which the performance of individual investments within the segment are measured.

For example, the Standard & Poor's 500 Index (S&P 500) and the Dow Jones Industrial Average (DJIA) are the most widely followed benchmarks, or indicators, of the US market for large-company stocks and the funds that invest in those stocks.

There are other indexes that serve as benchmarks for both broader and narrower segments of the US equities markets, of international markets, and of other types of investments such as bonds, mutual funds, and commodities.

Individual investors and financial professionals often gauge their market expectations and judge the performance of individual investments or market sectors against the appropriate benchmarks. In a somewhat different way, the changing yield on the 10-year US Treasury bond is considered a benchmark of investor attitudes.

For example, a lower yield is an indication that investors are putting money into bonds, driving up the price, possibly because they expect stock prices to drop. Conversely, a higher yield indicates investors are putting their money elsewhere.

Originally the term benchmark was a surveyor's mark indicating a specific height above sea level.

benchmark

A permanent reference mark,usually set in concrete or iron and used to establish the elevation above sea level or certain corners in a surveying system. All other measurements in the area should be checked for accuracy relative to the nearest benchmark, preferably against several nearby benchmarks to establish redundancy.

References in periodicals archive ?
The methodology behind VGMark07 reflects Futuremark's practice of building benchmark workloads based on real world applications to produce credible and relevant performance measurements.
SecurityExpressions has completed the rigorous certification process for more benchmarks than any other product, and is the only product to currently be certified on all of the Windows benchmarks, as well as Solaris, HP-UX and Linux.
1 benchmark result supporting 30,000 concurrent users with the HP Integrity rx8620 Server running a single instance of Microsoft SQL Server 2005.
Market leaders like Benchmark are developing a core competency in Response Management to empower their executives with the insight and tools they need to simultaneously increase customer service and improve operating profits.
This BENCHMARK seminar provides that unique forum, and we are excited and intrigued by what we'll find out in our analysis at this powerful event.
PathScale has published a white paper that includes a technical analysis of several application benchmarks that compare the new InfiniPath interconnect with competitive interconnects.
The SAP SD Standard Application Benchmark performed on January 26, 2005 by NEC in Otemachi, Tokyo, Japan was certified on February 10, 2005, certification number 2005001.
KFH, the second-largest bank in Kuwait, effectively replaces AEW Capital Management, which formed a joint venture with Benchmark in 1997 to acquire the 11 properties in Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine and Vermont, according to Grape.
In the SAP Standard Application ATO Benchmark, two-tier Internet configuration, it achieved 6,220 fully business processed assembly orders per hour with an 8-way server running SAP R/3 Release 4.
Forty-five percent of the capacity of the total capacity of the benchmark is contained in ASU-2.
For example, a benchmark could be defined as the average return of Lehman Bros.