What is high trading volume in a stock indicative of?

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What is high trading volume in a stock indicative of? Is high liquidity a good thing or a bad thing?

At Investopedia - Average Daily Trading Volume - ADTV it says: If trading volume isn't very high, the security will tend to be less expensive because people are not as willing to buy it. But I thought if trading volume was high, it means everybody is getting rid of that stock and hence the price will be low. But it seems the opposite is the case here? Also it says: when average daily trading volume is high, the stock can be easily traded and has high liquidity Is high liquidity a good thing...

Answer:

High liquidity doesn't necessarily mean that "everybody is getting rid of the stock", since...

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Other solutions

What do changes in the trading volume of a stock tell us?

It seems that stock analysts, at least the ones on TV, are always talking about changes in the price of a stock, but rarely about changes in volume. What do changes in trading volume tell us? Is there any trading analysis methodology that takes volume...

Answer:

You can do a lot of volume/price analysis on Metastock. It is hard to trade on a volume focus alone...

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Andrew Quin at Quora Mark as irrelevant Undo

What correlations, if any, exist between stock volatility and trading volume?

I was thinking the price of Apple (AAPL) is getting really high ($600+/share) and why its Board doesn't authorize a stock split, as they've done (three times) in the past.  Clearly, there is a lot of demand for the stock (i.e. volume).  Would the lower...

Answer:

There is no-correlation as such between a stock price and trading volume. A high stock price doesn't...

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Abhinav Kukreja at Quora Mark as irrelevant Undo

Answer:

It really depends on the price of the stock (since $1.00 stock and $300.00 stock will have much different...

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joe at Yahoo! Answers Mark as irrelevant Undo

I own 13K shares of a stock, but the volume is trading sooo low....will I be able to sell it?

So I own about 13,000 shares of this one company's stock....but the trading volume has been so low, like only 1000 to 3000. How can I see all my shares if the volume is so low?? ...show more

Answer:

Are you sure that you haven't been tricked or ripped off? That is, it sounds like a penny stock "...

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CBLIIWSLXCFLJUSNFQO6GODVTA at Yahoo! Answers Mark as irrelevant Undo

Trading stock options: price, volume, expiration... etc?

I am new to trading options and have a few basic questions. 1. If an option is selling for .15, that means it is 15 cents for the contract to put/call 100 shares right? 2. If I buy 10 contracts of .15, how much will that order cost? <see #4> 3...

Answer:

1. If an option is selling for .15, you have to multiply that by 100 because each contract represents...

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grimmy b at Yahoo! Answers Mark as irrelevant Undo

Where to find a screener for stock options (buy/sell calls) with the highest volume/activity of trading?

looking for a site that has a screener for stock options buying/selling of calls, stocks with the highest volume/activity for trading options, where do i find such a place? thanks

Answer:

Your broker should offer such a screener. At least mine does. Optionsxpress.com .

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Why is trading volume in China stock exchanges mainly generated by retail investors and not institutional investors?

In the US, the trades are dominated by institutional investors. In China, it is the retail investors who dominate. Why is trading volume in China stock exchanges mainly generated by retail investors and not institutional investors? The Chinese banks...

Answer:

The big institutional investors in China are the state holding companies and they do not actively trade...

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Joseph Wang at Quora Mark as irrelevant Undo

Answer:

Simple answer: There are more sellers than buyers. Low volume doesn't mean much. If you believe in...

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Can someone explain bid size, ask size, and volume, when it comes to stock trading?

I am watching this penny stock, that is currently 0.151/share....the bid size is 0.15/10,000, and the ask size is 0.1515/5,000. The volume is 24,195,049. Suppose I have $10,000.....since it's 0.15 per share, I could buy 66,666 shares....but since the...

Answer:

A bid of 0.15x10000 means that someone wants to buy 10000 shares for $0.15. There are probably other...

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