Why can prices suddenly lurch even when a company’s fundamentals have not changed? Market volatility measures the magnitude and frequency of price fluctuations. Retail investors can amplify it when they trade rapidly or buy and sell en masse, turning collective sentiment into abrupt market movement. section 10.15
The Robinhood rush
During the COVID-19 pandemic, retail traders using online platforms such as Robinhood helped drive a surge in stock prices. Optimism about a sector or company could increase demand even without strong underlying reasons, pushing asset prices higher or lower as sentiment shifted. section 10.15
