beta

Pre-release version of a new software program still in development, which may be handed out to users for testing. The worst bugs are usually eliminated at the earlier alpha stage of development. Beta testers use the software to do real work and report any bugs or badly implemented features they find to the developers, who incorporate this information in refining the product for release. Organizations that assist with such testing are known as beta sites.

beta

Value that represents the risk associated with a share in relation to the risk of the equity market as a whole. A beta is a reflection of the volatility of return of a share for a 1% return from the whole market. The lower the value of the beta, the less risk there is associated with the stock. A beta greater than one means the rate of return required is greater and therefore the stock is riskier. Shares with a low beta are also known as defensive stocks.