benchmark
A standard of comparison.
Generally this term is used in reference to a security, index, or other investors. Sometimes this consists of another actual economic instrument, and sometimes it is merely an established set of values. For example, the performance of a technology stock may be evaluated relative to the Nasdaq. When choosing a benchmark it is important to select an appropriate standard, or else the comparison is meaningless. The practice of using benchmarks is known as ‘benchmarking.’
Generally this term is used in reference to a security, index, or other investors. Sometimes this consists of another actual economic instrument, and sometimes it is merely an established set of values. For example, the performance of a technology stock may be evaluated relative to the Nasdaq. When choosing a benchmark it is important to select an appropriate standard, or else the comparison is meaningless. The practice of using benchmarks is known as ‘benchmarking.’