Base Period

DEFINITION of 'Base Period'

A particular time period for which data is gathered and used as a benchmark against which economic data from other periods is measured.

Also referred to as "reference period."

BREAKING DOWN 'Base Period'

Think of this as a yardstick for economic data. For example, if a price index has a base year of 1990, current prices are being compared to prices in that time period.

RELATED TERMS
  1. Reference Base Period

    A year in which the Consumer Price Index is equal to 100, a reference ...
  2. Holding Period

    The real or expected period of time during which an investment ...
  3. Benchmark Bond

    A bond that provides a standard against which the performance ...
  4. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's ...
  5. Benchmark

    A standard against which the performance of a security, mutual ...
  6. Blocked Period

    A period of time in which an investor’s securities are prevented ...
Related Articles
  1. Mutual Funds & ETFs

    Benchmark To Show Winning Returns

    You can't win if you don't keep score. Read on to learn how to measure your returns.
  2. Investing Basics

    How to Use a Benchmark to Evaluate a Portfolio

    What is an investment benchmark and how is it used to evaluate the risk and return in a portfolio.
  3. Active Trading Fundamentals

    How Big Data Has Changed Finance

    The vast proliferation of data and increasing technological complexities continues to transform the way industries operate and compete.
  4. Technical Indicators

    Moving Average

    Learn about this basic technical indicator and how you can use it to chart the value of a security's price over a set period.
  5. Mutual Funds & ETFs

    FCNTX: Fidelity Contrafund Risk Statistics Case Study

    Explore a risk statistics case study on the Fidelity Contrafund, including its characteristics and how it has performed against the S&P 500 Index.
  6. Investing Basics

    What's a Benchmark?

    A benchmark is a standard investors choose to gauge the performance of their portfolios.
  7. Professionals

    Data Analyst: Job Description & Average Salary

    Learn about a data analyst career and how much money you can expect to make. Understand the skills and education needed to become a data analyst.
  8. Mutual Funds & ETFs

    Benchmark Your Returns With Indexes

    If your portfolio is always falling short, you may not be making an apples-to-apples comparison.
  9. Options & Futures

    Breaking Down The Binomial Model To Value An Option

    Find out how to carve your way into this valuation model niche.
  10. Investing Basics

    R-Squared

    Learn more about this statistical measurement used to represent movement between a security and its benchmark.
RELATED FAQS
  1. What is an elimination period?

    Elimination period is a term used in insurance to refer to the time period between an injury and the receipt of benefit payments. ... Read Answer >>
  2. Over what period should I use dollar cost averaging?

    Learn why dollar cost averaging should be implemented over a period of time that is 12 months or less in order to avoid missing ... Read Answer >>
  3. When does the holding period on a stock dividend start?

    Understand the difference between qualified and unqualified stock dividends, and when the holding period for qualified dividends ... Read Answer >>
  4. How is cash flow affected by Average Collection Period?

    See how reducing a company's average collection period can help cash flow, and learn why collections practices are so important ... Read Answer >>
  5. How is a simple moving average calculated?

    Learn about the simple moving average, how the indicators are used, and how to calculate a stock's simple moving average ... Read Answer >>
  6. What types of data are mined for business intelligence?

    Learn about data mining and how businesses use data analysis in business intelligence to improve their operational efficiency ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center