Agency Dictionary

Volatility

nounPronunciation: /ˌvɒl.əˈtɪl.ə.ti/

Economics & Finance

What does “Volatility” mean?

The liability to change rapidly and unpredictably, especially in the market price of an asset or security.

Etymology

From volatile (from Latin volatilis, 'flying, fleeting,' from volare, 'to fly') plus -ity. The noun describes the quality of rapid, unpredictable change, used especially of market prices and chemical compounds.

Usage note

In finance, volatility measures the degree of variation in an asset's price over a period; it names risk and opportunity simultaneously, since high volatility increases both potential gains and potential losses.

Synonyms

fluctuation
instability
variability
unpredictability

Word family

volatile
volatilize
volatilization

Rhymes with

agility
fragility
hostility
futility

Usage examples

However, the data shows considerable volatility, with significant fluctuations between gains and losses.

Concepts

Source editions

Where this entry comes from in the Agency editorial.

Issue.7 - Economy in Crisis Pt.1March 16, 2023Read the edition

Words of the same theme

Consumernoun: An individual or group that acquires, purchases, or consumes physical or commercial goods and services for personal use. In marketing, consumers are studied for purchasing patterns and brand preferences.
brokeragenoun: The business, activity, or fee of a licensed broker who facilitates commercial transactions between buyers and sellers.
cinnamonnoun: An aromatic spice obtained from the stripped inner bark of several tree species of the genus Cinnamomum.
commoditynoun: A basic primary good, agricultural staple, or raw material that is interchangeable with other goods of the same type.
Corporativismnoun: The defence of the interests of a business class or professional group above the general interest, and the culture built around it. The word also names a political and economic system organized through corporations of employers, workers and professions.
Deficitnoun: The amount by which a sum of money falls short of the required or expected amount, particularly when spending exceeds revenue.
denariusnoun: A standard silver coin in ancient Roman currency that served as the principal denomination of daily commerce and military pay.
fiat currencynoun: Government-issued legal tender not backed by a physical commodity such as gold or silver.
Incentivenoun: A motivating factor, reward, or condition that incites or encourages an individual or business to take action.

Also from these editions: terms

Agoranoun: A public open space in ancient Greek cities used for assemblies, commercial markets, and philosophical dialogue.
Bailoutnoun: An emergency provision of financial assistance to a failing company, bank, or economy to prevent insolvency.
Chitonnoun: A draped garment or tunic worn by men and women in ancient Greece, usually fastened at the shoulders by brooches.
Deflationaryadjective: Tending to cause or associated with a general and persistent decline in price levels across an economy.
Emporoinoun: Ancient Greek merchants or maritime traders who carried goods between different city-states and overseas ports.
Ephemeraladjective: Lasting for only a very brief period of time; fleeting, transitory, or impermanent in nature.
Eruditeadjective: Characterized by great knowledge, extensive learning, and scholarly cultivation across diverse disciplines.
Himationnoun: An outer garment consisting of a large rectangular mantle draped over the body, worn in ancient Greece.
Hydrianoun: An ancient Greek ceramic water vessel featuring three handles, used for carrying and pouring fresh water.
Oratorynoun: The formal skill, art, or practice of public speaking with eloquence, clarity, and persuasive power.
Stagnationnoun: A state of inactivity, sluggishness, or lack of growth in an economy or commercial system.