TradesZ
Top 10 stocks to add now
← All terms
Fundamentals

Beta

Beta measures how much a stock's price swings compared to the overall market. A beta of 1 means the stock moves in line with the market; higher than 1 means it's more volatile (wilder swings), and lower than 1 means it's calmer. You'll see beta listed on most stock research sites—it matters because it helps you understand your risk. If you can't stomach big price swings, you might prefer lower-beta stocks. For example, a steady utility company might have a beta of 0.7, while a trendy tech startup could have a beta of 1.8. Think of it as the stock's "jumpiness" score.

Updated August 1, 2026.