What Is the Definition of Stock Volume?

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Stock volume is defined as the number of shares that are traded in a day, including both buying and selling of shares. Analyze the stock volume for a company to determine the volatility of the stock with help from an investment manager in this free video on stocks.

Part of the Video Series: Stocks & Mutual Fund Investments
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Video Transcript

OK what's the definition of stock volume? Stock volume is basically the term to describe how many shares are trading per day. So high volume means that many thousands or even millions of shares have traded hands and that's both buying and selling. So volume tracks both buying and selling of shares and you'll see very large number for the bigger, more well known companies. For smaller stocks or unknown companies, the volume will be much lowers. And volume is also going to be a determining factor in the volatility of a stock. If there's a lot of volume, the volatility of the stock could be rather high so it's something to look at if you're analyzing and equity and you see a high volatility number there, go and see what the volume has been for the last few days, weeks, months and see traditionally how that equity trades.

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