The stock market has been very “volatile” throughout the year 2022. During the early stages of COVID-19, the stock market was "volatile.” Haven't we all heard the term "volatile" too many times in stock market discussions or market commentaries? But what does it actually mean in this context? Let’s find out. Basically, “volatility” occurs when stock markets experience frequent and unpredictable price movements, either up or down. A more technical definition is that volatility is the standard deviation of a stock's annualized returns over a given period and indicates the range within which its price can rise or fall. To simplify, a stock is said to have high volatility if its price fluctuates rapidly in a short period.Factors such as political and economic conditions, company performance, earnings reports, and interest rate decisions can all contribute to market volatility.