Volatility Explained
A 1-minute lesson from the MarketPro academy, one of 18 in stock market basics.
Volatility describes how much and how quickly a stock's price moves over a given period. A highly volatile stock can swing sharply in either direction within a short time, while a low-volatility stock tends to move more gradually.
Volatility describes how much and how quickly a stock's price moves over a given period. A highly volatile stock can swing sharply in either direction within a short time, while a low-volatility stock tends to move more gradually.
Why Volatility Happens
- Company-specific news, such as earnings results or leadership changes, can cause sudden price swings.
- Broader economic or geopolitical events can move entire markets, affecting many stocks at once.
- Lower trading volume can make a stock's price more sensitive to any single buy or sell order.
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Lesson 16 of 18 in Stock market basics
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Not investment advice. Past performance is not indicative of future results.