What does beta measure in the stock market?

Answer Beta measures the volatility of a stock in comparison to the risk of the stock market as a whole. The stock market is assigned a beta of 1. If a stock has a beta far greater than 1, the stock is co... Read More »

Top Q&A For: What does beta measure in the stock market

What does beta mean in the stock market?

When people refer to "beta" relative to the stock market, they mean the number (also known as the beta coefficient) that represents the correlation of a stock's returns to the returns of the entire... Read More »

Is a Negative Beta Coefficient More Risky Than a Positive in the Stock Market?

Most stock market investors want to maximize their potential for profit, while minimizing their exposure to financial risk. Beta is a statistical measure that allows investors to assess the probabi... Read More »

How to Measure Stock Market Sentiment With the Put/Call Ratio?

While it is notoriously difficult to know where the stock market is headed in the short term, one of the best predictors of stock market performance is the put to call ratio. This ratio measures th... Read More »

What does bid mean in the stock market?

The bid price refers to the price a buyer is willing to pay for a security. Bid prices change frequently throughout the trading day. The "best bid" is the best price a buyer will pay for a security... Read More »