A sharp, prolonged decline in the price of stocks, usually brought on by a slowing economy. A stock with beta of one has historically moved the same as the general market. A beta higher than one indicates movement in the same direction as the general market but more so. A stock with a beta less than one has historically been less volatile than the general market. Conservative investors look for stocks with lower betas.
Aggressive investors look for stocks with higher betas.
Blue Chip Stock Common stocks of large companies that have a history of strong earnings growth and dividend payments. These companies are known for quality management and operate in established industries with expectations for continued success. Book Value Book value is the difference between a company's assets and its liabilities divided by its total shares outstanding. It is reported on a per share basis. The book value of a company may vary significantly from its liquidation or market value.