There are many people engaged in stocks, and they can be professionals or non-professionals. The ultimate goal of investing existing funds in stocks is to obtain benefits regardless of their status. How to choose an advantageous stock is often after the market opens every day For the topics discussed, everyone has their own opinions and will choose to replace, buy, or sell stocks based on the current market environment. Calculating the turnover rate is a common way. So what does turnover rate mean? Is the turnover rate high or low?
What does turnover rate mean? Is the turnover rate high or low?
When people invest in the stock market, they can see that there are multiple stocks, and when they open a position, they will wonder what to choose. With the knowledge of professionals, it will be suggested that investors need to calculate the turnover rate. For those with relative experience, they can quickly calculate the value of their favorite stocks, but this term will be unfamiliar to newcomers.
The turnover rate is an important indicator to measure the activeness of stocks. No investment in a stock in the near future means that the satisfaction with the stock is low, and it is not attractive enough. After a variety of assessments, you will find that you will buy There will be no financial benefits afterwards. For market companies when stocks are issued, they will use the sale of stocks to obtain investment from people from all walks of life in the company. If the company’s economic benefits develop well, the value of the stocks will increase, so that the stockholders can freely choose to buy or sell. The wishes of the person.
Is the turnover rate high or low?
To understand, we must first know the formula for calculating the turnover rate. The turnover rate is equal to the trading volume divided by the total outstanding share capital. There is a proportional relationship between the trading volume and the turnover rate, and the turnover rate will be higher if the trading volume is large. For the phenomenon that the turnover rate itself is a dynamic development, it needs to be analyzed based on the previous data. It cannot be judged by a single number. If the difference between the two is relatively large, specific problems will be analyzed in detail. Be cautious, you can check the relevant rules and techniques on the platform and give appropriate help. Investors who want to demand stability in stock investment must not exceed the difference between the turnover rate of about 3%, and stable economic development will certainly ensure that the upward and downward trend of stocks will be weaker.
By calculating the turnover rate, you can understand the current stock activity and then select high-quality stocks. It is important to know that the selection of high-quality stocks in the industry is of great significance to investors and determines the economic benefits of stock later trading. The level.