Volatility

Volatility describes the potential value fluctuation of a security over time. More specifically, how great the value change and how fast the value change is. It may also be seen as, the amount of risk of a security. A high volatility means, the security’s value may spread dramatically. A low volatility means, the security’s value is less likely to spread dramatically. Volatility is most often used in the topic of Stock Market. Volatility is a major influence is people’s decision of choosing an investment.

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