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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 se . . . View Full Definition

Benchmark Ball: A favorite or starter ball used for reading lanes (an oil pattern). A bowler understands the benchmark ball by virtue of its roll, dynamic characteristics, surface, and feel.

Benchmark Issue: Also called on-the-run or current-coupon issue or bellwether issues. In the secondary market, the benchmark issue is the most recently auctioned Treasury issues for each maturity.

Sharpe Benchmark: A statistically created benchmark that adjusts for a manager's index-like tendencies. Named after William Sharpe, Nobel Laureate, and developer of the capital asset pricing model.

Benchmarks: The standards used as a basis for comparison or measurement.

Benchmarking: The systematic process of comparing an organization’s products, services and practices against those of competitor organizations or other industry leaders to determine what it is they do tha . . . View Full Definition

Benchmark Interest Rate: Also called the base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the co . . . View Full Definition

Customized Benchmarks: The total amount of credit given by NYSE member firms to finance customers purchasing securities.

Benchmark Error: Use of an inappropriate proxy for the true market portfolio.

World Equity Benchmark Series (WEBS): A multilateral development finance agency created by the 1944 Bretton Woods, (New Hampshire) negotiations. It makes loans to developing countries for social overhead capital projects that ar . . . View Full Definition