Investing in a volatile and riskier company implies a higher potential for both gains and losses. Such companies are more sensitive to market changes, which can lead to significant price swings. This can provide opportunities for high returns if the investor can accurately predict market movements. However, the risk of losses is also higher, especially for investors who are not able to manage the risks effectively. It's important for investors to understand their risk tolerance and investment goals before investing in these types of companies.
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