Beta Definition

Beta measures how sensitive a security's price is to overall market movements.

What is Beta?

A beta above 1 suggests a security tends to move more than the market, while a beta below 1 suggests less sensitivity.

Beta is used to gauge relative volatility and risk when comparing securities to a benchmark index.

A stock with a beta of 1.5 would be expected to move roughly 1.5% for every 1% move in its benchmark index.

A balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point in time.

A bar chart is a price chart that shows the open, high, low, and close for a security over a set period using vertical bars.

The base currency is the first currency listed in a currency pair, against which the second currency is quoted.