Glossary
What is Volatility?
Volatility is how bumpy a stock's price ride is.
The simple explanation
A volatile stock swings up and down a lot, sometimes in a single day. A calm stock moves slowly. Higher volatility means bigger possible gains and bigger possible losses.
An example
A stock that moves 5 percent most days is more volatile than one that moves half a percent.
Why it matters
Knowing how bumpy a stock is helps you decide whether you can stomach its ride.
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Educational information, not financial advice.