Share prices experience volatility. The extent of volatility varies across companies, business events and market cycles. The extent of the volatility can range from a little to a lot. Time intervals for substantial price changes may be daily, between days and over longer periods.

Volatility is an insight to the risk of share price fluctuation. It is a factor in the balancing of risk and reward.

The appetite for volatility varies depending on the share strategy and the extent of an investor’s preparedness to experience corrections.

Day traders may seek out companies with high volatility. Alternately investors, seeking to maximise a divided stream while achieving some capital growth, may take a conservative stance and avoid companies with high volatility.

Market Shares provides graphs and tables across time intervals of share price volatility.