Market Perform

RECENT NEWS
Market Intelligence Center  Sep 13  Comment 
Analysts at Northland Securities upgraded their rating on Intel Corporation (INTC) to “market perform” from “underperform”. The firm has a... Read More > The post Intel upgraded to market perform appeared first on InvestorsObserver.
MarketWatch  Aug 8  Comment 
Mallinckrodt PLC has been downgraded from outperform to market perform by Raymond James, as "we see limited possibilities for further meaningful outperformance given longer-term risks to key portfolio products," analyst Elliot Wilbur said in the...




 

The term Market Perform refers to investments that have seen equivalent returns compared to the market in general. In reference to stocks, market performance is typically gauged by a benchmark index, such as the S&P 500 (.SPX-E) or the Dow Jones Industrial Average (.DJIA). Investments that see better or worse returns than the market in general are said to out perform or under perform the market, respectively.

Examples

  • A man buys shares in an index fund that tracks the S&P500. At the end of a given year his investment has appreciated identically to the index. As the S&P is used as a benchmark for the market in general, the man's investment has market performed.
  • A woman buys stock in three companies at the beginning of the year. Six months later, those three companies have combined to provide 28% returns on her initial investment. The benchmark indices, by contrast, have only shown 17% returns over that time frame. The woman has outperformed the market.
  • A man buys a managed mutual fund that seeks to beat the market. In the year he was invested in the fund he saw 12% returns. However, in that same time frame both the S&P 500 (.SPX-E) and the Dow Jones Industrial Average (.DJIA) see returns above 15%. The man has under performed the market.
  • A woman purchases shares of an ETF, which she holds for two years. After this period of time, the value of the shares have declined 9%. However, benchmark indices have ALSO declined about 9% over that same time frame. The woman's investment has thus market performed.

See Also

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki