Definition of the word volatility

The word "volatility" has its roots in Latin. The Latin word "volatilitas" means "the state of being light or airy," and it is derived from "volare," which means "to fly." This Latin word was later incorporated into Middle English as "volatilite," and it referred to the quality of being light or restless. Over time, the meaning of the word "volatility" shifted to encompass the concept of sudden or rapid changes in value or behavior. In the context of finance, volatility is often used to describe the fluctuations in the market value of an investment, such as a stock or commodity. In summary, the word "volatility" has its origins in Latin and originally meant the state of being light or airy. It has since taken on a new meaning in the context of finance, referring to sudden or rapid changes in value or behavior.