Beta Financial Glossary

What is it? This is a measure of market risk. It determines how volatile a share price is (ie how much a share tends to rise and fall over a period). The beta measures the distance between the high points and the low points, so the higher a shares beta, the more volatile it is. If youre investing for the long term, volatility doesnt matter much. However, if youre a short-term speculator, a highly volatile share can offer big rewards but also big potential losses if your timing is off.

Finance Term Definition Added By: Gabriel

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