Benchmark

Business, Legal & Accounting Glossary

Definition: Benchmark



What is the dictionary definition of Benchmark?

Dictionary Definition


A standard or point of reference against which things may be compared or assessed

  1. A standard by which something is evaluated or measured.
  2. A surveyor’s mark made on some stationary object and shown on a map; used as a reference point.
  3. A computer program that is executed to assess the performance of the runtime environment.
  4. To measure the performance of (an item) relative to another similar item in an impartial scientific manner.

Full Definition of Benchmark


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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/benchmark/
Modern Language Association (MLA):
Benchmark. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 26, 2020 https://payrollheaven.com/define/benchmark/.
Chicago Manual of Style (CMS):
Benchmark. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/benchmark/ (accessed: November 26, 2020).
American Psychological Association (APA):
Benchmark. PayrollHeaven.com. Retrieved November 26, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/benchmark/

Definition Sources


Definitions for Benchmark are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th March, 2020 | 7 Views.