Volatility

Business / Taxes / Volatility: The term volatility indicates how much and how quickly the value of an investment, market, or market sector changes. For example, because the stock prices of small, newer companies tend to rise and fall more sharply over short periods of time than stock of established, blue-chip companies, small caps are described as more volatile. The volatility of a stock relative to the overall market is known as its beta, and the volatility triggered by internal factors, regardless of the market, is known as a stock's alpha.

Volatility Risk

Business / Finance / Volatility Risk: A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return MORE

Asymmetric Volatility

Business / Finance / Asymmetric Volatility: Phenomenon that volatility is higher in down markets than in up markets. MORE

Implied Volatility

Business / Finance / Implied Volatility: The rate that a seller of a futures contract can earn by buying an issue and then delivering it at the settlement date. Related: Cheapest to deliver issue. MORE

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