Category: Money Tips Date: 2006-07-30
"Turnover" also called "turnover rate" refers to a certain period of time the stock market, resale trading frequency and liquidity of the stock to reflect the strength of one of the indicators.
In other words, turnover is a day Chengjiaogushuo and the ratio of the total number of outstanding shares.
Its calculation formula is:
Turnover rate (turnover) = (a certain period of time, volume) / (number of shares) x100%
For example, a stock within one month of the 2000 shares traded, while the total share capital of the stock l million shares, then the stock in this month's turnover of 20%. In China, the stock is divided into the circulation in the secondary market and non-public shares in circulation in the secondary market, state shares and legal person shares in two parts, the general only negotiable part of the calculation of turnover of the stock in order to more realistic and accurate to reflect the stock's liquidity. By this method of calculation, in this case the flow of capital that stock if it is 200O 10000, its turnover of up to 100%. In foreign countries, usually with a turnover period of time with a point on the ratio between the market value to calculate the turnover ratio.
Low turnover shows that turnover is not active, if it is Zhuanggu, then the main bargaining chips are basically concentrated in the hands of small Fu Chou.
High turnover shows that turnover come forward, reflecting the large number of Xihuo main, there is a greater degree of activity, raised the possibility of future large.
In addition, the combined turnover and stock price movements, you can make certain future stock price forecasts and judgments. Turnover of a stock's sudden rise in volume amplification, may mean that there are a large number of investors buying the stock likely will follow up. If a stock continued to rise for a period of time, turnover has increased rapidly, it may mean that those who want to cash in some profits, stock prices may fall.
It is worth noting, however, is that high turnover stocks, often the object of pursuit of short-term funds, speculative strong, stock prices fluctuated considerably, the risk is also relatively large.
In general, a stock If you want to have a good rally, we must maintain a relatively high turnover, â—?a rising band a better standard of 5% of turnover â—? is less than this number, indicating Trading was less active, too, there the main suspect shipments, if more than 10% on turnover, we must take extra care to ship the main signs is quite evident.
