A measure of the volatility of a share in relation to the overall market. A share with a high beta coefficient is likely to respond to stock market movements by rising or falling in value by more than the market average.
The Black-Scholes Option Pricing Model, developed by Fischer Black and Myron Scholes, is a mathematical model used to determine the fair value of options by incorporating factors such as volatility, interest rates, stock prices, exercise prices, and time until expiration.
A Daily Trading Limit is the maximum amount by which the price of a commodity or option is allowed to rise or fall in a single trading day. This mechanism is used to curb excessive volatility and protect investors.
Financial risk refers to the potential for volatility in investment performance due to the use of borrowed money. It indicates the possibility of losing money when investing in financial instruments.
A growth fund is a mutual fund that primarily invests in growth stocks with the aim of providing capital appreciation for the fund's shareholders over the long term. These funds tend to be more volatile compared to conservative income or money market funds.
Penny stocks are securities trading at a low price, generally less than $5 per share, and are issued by small companies with short or erratic revenue and earnings histories, often traded over-the-counter.
Small-cap stocks refer to the stocks of publicly traded companies with a market capitalization typically between $300 million and $2 billion. They are considered less well-established but often exhibit faster growth potential compared to mid-cap and large-cap stocks.
In finance and economics, the term 'volatile' refers to the tendency for rapid and extreme fluctuations in the price of a particular asset such as stocks, bonds, or commodities. Market-related volatility in stocks is typically measured by the Beta Coefficient.
