In the broader concept, this business term illustrates the fluctuation, sometimes high unpredictability of price movement. It can be either when the price is falling or rising suddenly.
High volatility happens when an operational stock that usually trades at say 1% of its price suddenly starts to trade at the range of 2 to 3% of the same price.
As the name suggests, these measurements show the dispersion of returns for a given stock over a certain period of time.
As a business owner, you should understand what is implied volatility. This includes a prediction of a market, depending on how the stock price will likely move.
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