What is volatility in stock market?

Volatility in the stock market refers to the fluctuation in the price of securities over time. A stock or other security is said to be volatile if its price changes significantly over short periods of time. Volatility can be measured using a variety of statistical tools, such as the standard deviation of returns or the average true range of price movements.

High volatility in the stock market can be a source of risk for investors, as it means that the value of their investments may fluctuate significantly in a short period of time. This can make it difficult for investors to predict the performance of their portfolio and to make informed decisions about buying and selling securities. On the other hand, low volatility may be seen as a sign of stability and may be more attractive to some investors.

It's worth noting that volatility can vary significantly across different stocks and sectors, and that it can be affected by a variety of factors such as market conditions, economic news, and the performance of individual companies.