Volatility

/ˌvɒl.əˈtɪl.ə.ti/

Meaning & Definition

noun
The quality or state of being prone to rapid and unpredictable changes, especially in financial markets.
The volatility of the stock market can lead to significant gains or losses for investors.
The degree to which a substance can vaporize or change into a gas.
The volatility of the chemical compound makes it necessary to handle it with care in a controlled environment.
The tendency of prices to fluctuate over time.
High volatility in oil prices can affect global economic stability.
In finance, a statistical measure of the dispersion of returns for a given security or market index.
Investors often look at the volatility of a stock as an indicator of its risk.

Etymology

Late Middle English: from late Latin volatilitas, from Latin volatilis 'flying', from volare 'to fly'.

Common Phrases and Expressions

market volatility:
The tendency for market prices to fluctuate.
volatility index:
A measure of market risk and investors' expectations of volatility.
high volatility:
A situation where an asset's price experiences large swings.
volatile market:
A market characterized by rapid and unpredictable changes in price.

Related Words

Slang Meanings

Wild swings in stock prices.
That stock is crazy; it's got some serious volatility right now!
A risky investment due to price fluctuations.
Investing in crypto is high volatility, man, tread carefully.