Average Volume

RECENT NEWS
Forbes  Sep 13  Comment 
The most recent short interest data has been released for the 08/31/2016 settlement date, which shows a 2,073,291 share increase in total short interest for Dynegy Inc (NYSE: DYN), to 14,107,081, an increase of 17.23% since 08/15/2016. Total short...
Forbes  Sep 13  Comment 
The most recent short interest data has been released for the 08/31/2016 settlement date, which shows a 3,844,824 share decrease in total short interest for Brocade Communications Systems, Inc. (NASD: BRCD), to 9,167,161, a decrease of 29.55%...
Forbes  Sep 13  Comment 
The most recent short interest data has been released for the 08/31/2016 settlement date, which shows a 6,217,215 share increase in total short interest for Wendy's Co (NASD: WEN), to 36,132,562, an increase of 20.78% since 08/15/2016. Total short...
Forbes  Sep 13  Comment 
The most recent short interest data has been released for the 08/31/2016 settlement date, which shows a 1,420,083 share decrease in total short interest for Hershey Company (NYSE: HSY), to 1,654,828, a decrease of 46.18% since 08/15/2016. Total...
Forbes  Sep 13  Comment 
The most recent short interest data has been released for the 08/31/2016 settlement date, which shows a 8,147,947 share decrease in total short interest for Abbott Laboratories (NYSE: ABT), to 64,594,446, a decrease of 11.20% since 08/15/2016....
Forbes  Sep 13  Comment 
The most recent short interest data has been released for the 08/31/2016 settlement date, which shows a 30,100,193 share decrease in total short interest for Lockheed Martin Corp (NYSE: LMT), to 6,690,480, a decrease of 81.81% since 08/15/2016....
Forbes  Sep 9  Comment 
The SuperDividend REIT ETF (SRET) is seeing unusually high volume in afternoon trading Friday, with over 77,000 shares traded versus three month average volume of about 35,000.  Shares of SRET were off about 2.6% on the day.
Mondo Visione  Sep 5  Comment 
Euronext, the leading pan-European exchange in the Eurozone, today announced trading volumes for August 2016. The August 2016 average daily transaction value on the Euronext cash order book stood at €4,844 million (-43.8% compared to...
Benzinga  Sep 2  Comment 
CME Group Inc (NASDAQ: CME) disclosed that its average daily volume (ADV) reached 13.8 million contracts a day, representing a drop of 15 percent on a year-over-year basis. However, on a year-to-date basis, ADV through August averaged 15.5 million...
Forbes  Aug 30  Comment 
The Agribusiness ETF (MOO) is seeing unusually high volume in afternoon trading Tuesday, with over 991,000 shares traded versus three month average volume of about 100,000.  Shares of MOO were up about 1% on the day.




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The average volume is the average number of shares traded daily for a particular security

Also known as average daily volume or average daily trading volume, the average daily volume is a measure of the liquidity of a stock based on the number of shares that trade hands from sellers to buyers each day. If a buyer purchases 100 shares, then the volume for that period increases by 100 shares from that transaction.

Unusually high volume in comparison to the average daily volume can indicate big news about a company - if something has changed investors' perception of a company's value, the trading that results (either buying or selling) pushes up volume for that day - for example, if a company submitted earnings or guidance that was unexpectedly high or low.

Securities with high average daily volume can be easily traded and are very liquid. Companies with low average daily volume are less liquid and harder to trade because there are fewer buyers and sellers for the stock. Securities with low average daily volumes (for example, fewer than 50,000 trades a day) are susceptible to higher volatility because sellers have more control over the price of the security. Securities with higher average daily volumes are more competitive and therefore less volatile.

Examples

Consider an extreme case of low average daily volume where there is only one seller of a security. If you want to buy that security from the seller, you have to accept their price because there is no one else competing for the sale. Later, as an owner of this low average daily volume security, the company releases horrible earnings news. Now, wou want to sell the security, however, because there are very few buyers for security, you are stuck with it.

In another case, you have two securities you're considering purchasing. Everything about the two companies is equivalent -- share price, earnings, demographics, etc. -- except, one of the securities has a higher trading volume than the other. In this case, purchase the company shares with the higher trading volume. This will ensure you purchase the shares at a competitive price and will have a better chance of selling the shares in the future.

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