What does "beta" mean with stocks?

Answer by  LippoTheHippo (67)

Beta is a statistic which measures how closely the movement in a particular stock matches the movement of the over all market. Stocks with a beta of one will match the market exactly; stocks with a higher beta will fluctuate more than the general market. Stocks with a negative beta will move in the opposite direction of the market.

Answer by  Vladlen (358)

It means how volatile is a stock comparing to the whole market, were the value of >1 is more volatile (more risky) and the value of