See: Liquidity.
The normal volume of whatever.com has been to trade 8 million shares a day. But as we roll into holiday season, daily volume shrinks dramatically to just 2 million shares traded per day. The stock price has been weak as well, down about 7% since the slow season started.
The notion is that buyers, being proactive, would-be share owners...set the price. And when the gaggle of those buyers fades away to the Bahamas, Hawaii, or Jackson Hole for winter vacation, the stock price sags, a sagging driven largely by the low volume of trades more than anything else, i.e. not a fundamental issue with the company selling fewer widgets of whatever.coms.
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Finance: What is Trading Volume?29 Views
finance a la shmoop what is training volume training volume with a lot of
volume and this is trading with okay yeah yeah you get the idea [Man shouting into megaphone]
volume here is not about number 11 on the dial but rather about the number of [Person turning up volume dial]
shares trading back and forth on a given day week hour a month and generally
speaking higher levels of volume are a relatively bullish sign for the market [Water pouring]
on all else being equal that is optimistic investors are putting money
into the system buying up stocks and contributing liquidity like they are [Investor money transfer to stock market]
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low volume low liquidity and high is good
Inessa not just a california proposition 64 thing high volumes are attractive to [People protesting for cannabis]
large institutional professional traders and investors because there remains the
perception that if they want to sell a given position well then with high
volumes they can get out quickly so they feel less hesitation about getting in
quickly okay good just checking [Man shouting into megaphone]