Definition of Beta:
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.
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 & Poors 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 & Poors 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.
The second letter of the Greek alphabet (Β, β), transliterated as ‘b.’.
How to use Beta in a sentence?
- Value investors may view a high beta as a buying opportunity, because they are not scared off by volatility.
- The website that allows members of different fandoms to find others like them to date and enter relationships with is still in beta mode.
- But, just in right now, Tropical Storm Gamma, the third letter of the Greek alphabet, alpha, beta, gamma, delta, and so on and so on.
- 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.
Meaning of Beta & Beta Definition