Volatility refers to the degree of variation in the price of an investment asset over a specific period of time. It is a statistical measure typically expressed as the standard deviation or variance between returns from that same asset or market index. In most cases, the higher the volatility, the riskier the security. In the securities markets, volatility refers to significant fluctuations in market prices, characterized by rapid and substantial movements either upward or downward. A market is considered volatile when the stock prices rise or fall by more than one percent over a sustained period.