The stock market is a world of jargon and acronyms. It is difficult for average investors to understand the basics, making it difficult to embark on the path of becoming an experienced investor. Many people are not interested in the market, more willing to let others manage their own financial. Other people like more hands. Unfortunately, it can be difficult in the middle. Understanding the terms such as stock market trading volume is one of the top priorities.
What is the stock market trading volume?
When discussing any type of transaction on a transaction, the volume represents the number and size of transactions for that transaction. For example, if company XYZ has three transactions of 500, 1000 and 1200 shares, then it shares 2,700 shares. Thus, when discussing the entire market, the stock market trading volume represents the total number of shares traded during a certain period of time. Daily and weekly volume is a very common discussion topic, although the amount can be applied at any time. For example, we can say that NASDAQ traded 1 billion shares today. Volume number has no meaning unless it is associated with a period of time.
Why the stock market tells us?
as a measure of the belief in movement. For example, if the Dow Jones Industrial Average falls by a large percentage, but for light weight, this may be seen as a less meaningful move if it drops a lot. Increased volume leads to more fluidity It's easier to buy and sell a problem. For example, when the stock market price is low, you may see large fluctuations in prices due to buyers or sellers.
The meaning of a volume is usually the easiest to define in relative terms. 100,000 shares may be a large, or a small amount of the company. You should compare it to its average volume to get an idea if it is high or low volume. What is a problem with high volume may be the very low volume of the other.