Stock market volatility refers to the degree of variation in the price of stocks over a specific period. High volatility means that stock prices can change dramatically in a short time, while low volatility indicates more stable prices. Factors contributing to volatility include economic news, company performance, and global events.
Investors often monitor volatility to assess risk. For example, during times of uncertainty, such as a financial crisis or political instability, stock prices may fluctuate more than usual. Understanding volatility helps investors make informed decisions about buying or selling stocks in the stock market.