Glossary
What is Beta?
Beta tells you whether a stock tends to swing more or less than the overall market.
The simple explanation
A beta of 1 means the stock moves about like the market. Above 1 means it swings more, below 1 means it swings less. It looks at the past, so it is only a rough guide.
An example
A stock with a beta of 1.5 might rise 15 percent when the market rises 10 percent, and fall by a similar extra amount.
Why it matters
It is a quick way to see how risky a stock is compared with the market.
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Educational information, not financial advice.