What Is Volatility?
What is volatility? It is not a way to describe investment funds which are fluctuating in value. Volatility refers to an economic or financial situation characterized by constant and quick changes in rates and also other elements. Volatility is usually as a result of such events as a sudden increase in the value of a stock, an economic growth price that makes a dollar becomes worth greater than the earlier day’s or week’s value, a significant banking crisis, political unrest or war, or political action that causes fluctuations in provide and demand for a certain commodity.
For instance, on March 29, 2020, the price stock market basics of a share of XYZ Corp (NYSE: YHOO) went from $25 to more than $100 per share inside five minutes. The market value of the firm improved fourfold within a single learning [...]