Risk and volatility
Why some stocks swing more, and what that means for a contest.
5 min · Beginner · Lesson 7 of 10
Step 1 of 5
What volatility means
Volatility is how much and how fast a price tends to move. A volatile stock might move 5% in a day; a steady one might move 0.5%.
- Smaller companies tend to be more volatile than large ones.
- Fast-growing companies with no profits yet often swing more.
- Utilities and consumer staples tend to be steadier.
For entertainment and education, not investment advice.