Good news and bad news can have a dramatic effect on the stock price of a lightly held company with a relatively small number shares available for trading.
Large, widely held companies are less likely to have huge spikes or drops in stock price, but a 10% or more, move in a day is not uncommon even in the largest of publicly trading companies.
They are risky.
I'm looking at volatile stocks at the moment, FEYE, SCTY and the likes, and I'm curious what are the main reasons that cause this volatility? Why does the price fluctuate so much in such a short amount of time?
