Neutral stock

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Neutral stock

A stock with a beta of 1.0.

Neutral Stock

A stock with volatility exactly the same as the wider market. This means that the stock's riskiness is quantified at the exact same rate as the wider market. This is expressed by stating that the stock as a beta of exactly 1. See also: Gamma neutral.
References in periodicals archive ?
Other index families classify all stocks as either growth or value, or split the market capitalization of a single stock between growth and value, or simply omit neutral stocks entirely from their indexes.