Continue reading...If you ever look at the volume leaders for the trading day, you almost always will find Bank of America Corp. (BAC). On a day in October 2018, trading volume for BAC totaled 58,868,598. General Electric Company (GE) was even higher: 110,448,094. Those are big numbers, but where do they come from, and what do they mean?
The first part of the question can be answered with ease: market exchanges. The second part requires a little more detail. If you’re a retail investor, read on. While volume is only one tool of many, it adds value to your investing decision.
How it Works
Calculating volume is simply the total amount of shares traded for the day, which includes both buy and sell orders. You can determine the daily trading volume on your own—all transactions are publicly available—by calculating the total amount of shares traded. However, it’s much easier to look at the daily trading volume on any stock chart. Time is money, after all, and it would be wise to save time. Daily...
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