Definition
A statistical measure of how much an asset's price swings over time. Higher volatility implies higher short-term risk and potential return.
Related Investing terms
Stock
A security that represents ownership of a fraction of a corporation. Stockholder…
Bond
A fixed-income instrument representing a loan made by an investor to a borrower …
Mutual Fund
A financial vehicle that pools money from many investors to buy a diversified po…
Index Fund
A type of mutual fund or ETF designed to match the performance of a market index…
ETF (Exchange-Traded Fund)
A basket of securities that trades on an exchange like a single stock. Most ETFs…
Diversification
Spreading investments across different assets, sectors, and geographies to reduc…
Explore the full glossary
Browse 350+ finance, crypto, and fintech terms across 12 categories in the Digital.Finance glossary.