Definitions (2)
Popular Terms
1. US: Measure of the securities-market risk ('systemic risk'), it is an indicator of the volatility of a stock (or a portfolio of stocks) relative to a benchmark, such as Standards & Poor's 500 composite index (S&P 500), which is given a beta value of 1.00. Every listed stock is assigned a beta value (based on movements in its price) in 'beta tables' published by Standard & Poor's and Morgan Stanley investment Corp. A beta-value of 1.0 means the stock has moved up and down roughly in step with S&P 500; a beta value of 1.25 means that the stock is expected to do 25 percent better than the S&P 500 in an up market and 25 percent worse in a down market.
Conservative investors usually prefer stocks with low beta, whereas those looking for high risk-reward ratios choose high beta stocks. See also alpha.
2. UK: One of the four classifications (with alpha, gamma, and delta) of the largest and most traded stocks on London Stock Exchange (LSE) under the normal market-size classification system.

Use 'beta' in a Sentence

Value investors may view a high beta as a buying opportunity, because they are not scared off by volatility.
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The website that allows members of different fandoms to find others like them to date and enter relationships with is still in beta mode.
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If you wanted to make a couple bucks in the UK stock market you had to be buying and selling any stock that fell under the beta classification that would be your best bet.
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