A Literature Study of the Stock Market Volatility

Abstract

This review explains and explores the performance of stock volatility in financial markets and historical research to understand the operation of financial markets. From finding the meaning of the existence of the financial market to understanding what the stock volatility is, gradually understanding the measurement methods of various stock volatility, and finally comparing the actual application of stock volatility in financial markets with different development levels. Through specific enumeration of GARCH family analysis methods and combined with application case analysis, such as ARCH model and GARCH model, it is found that these models are only suitable for measuring stock volatility under certain conditions in order to obtain a better fitting effect. For the financial market, it is necessary to build a more perfect financial legal system, continue to strengthen the transparency of the financial market, and increase the openness of the financial market to show a more healthy stock stability rate. In addition to the internal factors of the financial market, it is also necessary to consider the external impact of macro and micro factors on the financial market so as to affect the stock volatility, which is one of the development directions of the financial academia.