Stock turnover rate
factor.formula
Stock turnover rate:
Among them, the average total market value is:
This formula calculates the turnover rate of a stock over a specific time period, where:
- :
Refers to the total transaction amount of all stocks in a specific time period. Usually, the time period can be a day, week, month or year. The transaction amount is the product of the stock's transaction volume and the transaction price.
- :
Refers to the average total market value of stocks during a specific period of time. It is expressed by calculating the average of the total market value at the beginning and end of the period. The total market value is the total value of a company's outstanding shares, calculated by multiplying the stock price by the number of shares outstanding.
factor.explanation
The stock turnover rate reflects the frequency of stock trading in a specific period. A higher turnover rate usually means that the market pays high attention to the stock, the trading is active, and the liquidity is good. On the contrary, a lower turnover rate may indicate that the stock is lightly traded and the liquidity is poor. This indicator can help investors judge the activity level and market sentiment of the stock, and is one of the commonly used liquidity indicators in quantitative investment. In addition, an abnormally high turnover rate may indicate an increase in price volatility, which needs to attract investors' attention.