Definition

The quality of being unpredictable or subject to rapid changes, often used in finance to describe the degree of variation in the price of a financial asset.

Example

The volatility of the stock market can make investing risky.

Conversation

Have you noticed the volatility in the stock market lately?

Yeah, it’s been really unpredictable, hasn't it?

Exactly! I’m trying to decide if I should invest or wait it out.

It's tough to tell, but sometimes that kind of volatility can create good opportunities.

Synonyms & Antonyms

Root Explanation

Volatility is formed from "volatilis" (from Latin, meaning flying or fleeting) and the suffix "-ity" (meaning the state or quality of). The word describes the state of being able to fly or change rapidly, often used in contexts like finance to refer to rapid price changes.

Memory Tip

Think of something that is 'flying' or 'fleeting' — 'volatilis' suggests movement, and '-ity' indicates a state. This helps you remember that volatility refers to a state of rapid change.

Visually Confused Words