Volume isn’t just an annoying math equation ❌🧮

And volatility isn’t just about dangerous electric wires ⚡

These two terms can tell us a lot about a stock 🤔

Volume = the total buys/sells of stock in a time period! 🛍️

This helps investors understand how active and popular a stock may be 🤩

High Volume means lots of shares are being traded 📈So, there’s lots of investor activity

Low Volume means fewer shares are being traded 📉So, there’s less activity or interest in the company

Now that you understand the level of activity for a stock, you need to understand the risk 🤓

This is where “Volatility” comes in 👉

Volatility = how drastically the stock’s price is changing overtime 😮

Higher volatility means greater risk, since the price is changing a lot 👀

Lower volatility means lower risk, since the price is changing less 😊

Volatility is evaluated in risk ratings, which we’ll learn more about in later lessons!

But, now you know that risk is related to a stocks’ volatility 🧠

By looking at both volume and volatility. . . 🤝

You can see if a stock is both popular and risky, or less popular but low risk 📈

It’s important to note that volume and volatility change over time💡

So, you may want to check your stocks regularly to monitor their volume and volatility!