What is Market Perform?

'Market perform' is an expression indicating that a security experiences returns similar to the overall market.

How Does Market Perform Work?

A security that investors and analysts describe as 'market perform' closely follows the performance of a market indicator, like the Dow Jones Industrial Average (DJIA). For example, if a stock appreciates at 10% per year and the Dow also grows at 10% per year, that stock is described as market perform.

Why Does Market Perform Matter?

Market perform is a subjective term that reflects neither poorly nor favorably on a stock. Investors seeking aggressive growth may wish to avoid items described as market perform and instead choose stocks that perform better than the market.