What is defined as performance data in the context of securities?

• A. A summary of market conditions
• B. A detailed analysis of company history
• C. A description of investment performance of a security
• D. An overview of potential investments

Answer: (C)

Performance data, in the context of securities, refers specifically to the description of how a particular investment or security has performed over time. This includes metrics such as returns, volatility, and comparison to benchmarks, which inform investors about the efficacy and history of that investment. Such data is crucial for investors aiming to make informed decisions, as it provides insights into the expected risks and rewards associated with holding that security.

While summaries of market conditions or details on company history offer valuable information, they do not focus specifically on the investment performance of an individual security, which is central to understanding performance data. Similarly, overviews of potential investments focus on future possibilities rather than historical performance metrics crucial for assessing past performance and making future predictions. Thus, the definition of performance data is well aligned with the description of investment performance, making it the correct choice.