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It is a reference used to make comparisons. In particular, in the financial world it is any index that serves as a reference to assess how efficient a portfolio is, how much it has grown or how profitable it was during a specific time period.  

One example would be the ibex 35 in Spain.

A point of comparison from which you can measure the performance of a stock, mutual fund, asset or even an individual such as an investment manager. Most people in the financial world use indexes as a benchmark, such as the dow jones Industrial Average, the Russell 2000, Nasdaq or, most commonly, the S&P 500.