Beta

Beta measures how much a stock's price swings compared to the overall market. If the market goes up 10%, does your stock go up 15% or only 5%? That's beta in action. You'll see beta listed on most stock research pages, and it matters because it tells you how risky a stock is relative to the market itself. A beta of 1.0 means the stock moves in lockstep with the market. Higher than 1.0? It's more volatile—bigger ups and downs. Lower than 1.0? It's more stable and predictable. For example, a tech startup might have a beta of 2.0, meaning it swings twice as wildly as the market, while a utility company might be 0.6, moving more gently.