YOU ASK:

What is the definition of Volatility?

WE ANSWER:

Volatility refers to the measure of how a stock fluctuates over time. This includes the price upswings and downswings.

For stock volatility, it refers to the possibility that a stock will drastically increase or decrease its value. Investors will evaluate the volatility of a stock and will decide whether they can profit from it. This is where the notion "buy low, sell high" can come in. This is one of the important considerations investors have when deciding to sell the stock they currently holds, or buy additional stock or to buy a new stock offering.

Volatility is affected by the stability of the stock's underlying assets, market conditions, as well as the perception of the public.

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