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The Daily Capital
INVESTING 201 · Lesson 76

Beta: how much a stock moves with the market

Daily Desk · Editorial5 min read
Beta is a one-number answer to 'how wild is this stock compared to the market?' A high beta amplifies everything — up and down.

When analysts call a stock “high beta,” they mean it's a wild ride relative to the market. Beta is a single number that captures how much a stock tends to move when the overall market moves — a quick read on risk.

— Educational, not financial advice.