Legal Definitions - volatile stock

Volatile stock refers to a type of stock that experiences rapid and significant changes in its price. This means that the value of the stock can go up or down quickly and unpredictably.

For example, if a company announces a major breakthrough in its research, the stock price may skyrocket. On the other hand, if the company reports a significant loss, the stock price may plummet.

Investors who are willing to take on more risk may choose to invest in volatile stocks in the hopes of making a quick profit. However, this type of investment can also result in significant losses.