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Beta
How much a share or index tends to move when the market moves.
A beta of 1 means it has tended to move in step with the market. Above 1, it has moved more; below 1, less. A beta of 0.5 means that when the market has risen 2%, it has tended to rise about 1%.
Beta is worked out from past moves and changes over time.
More terms
- Price to earnings (P/E)The share price divided by the profit per share: how many years of today’s profit you pay for.
- Dividend yieldThe dividends paid over the last year as a percentage of today’s share price.
- Ex-dividend dateThe first day a share trades without its next dividend.
- Payout ratioThe share of its profit a company pays out as dividends.
- Market value (market capitalisation)The share price times the number of shares: what the market says the whole company is worth.
- IndexOne number that tracks a basket of shares, so you can see how a whole market or sector is doing.
- Every term ↗
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