Trading Volume

Market Mechanics

Trading volume is the number of shares that change hands over a period, usually reported per day.

On its own it says little; it is read against the stock's own average. A price move on volume well above average reflects the decisions of more participants than a move on light volume.

Example

If a stock normally trades 2 million shares a day and trades 8 million on earnings day, volume ran at four times its average.

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