What is trading volume in stock market
Trading volume is an important aspect of the economic interactions in financial markets among various investors.
Both volume and prices are driven by underlying economic forces, and thus convey important information about the workings of the market. This chapter focuses on the empirical characteristics of prices and volume in stock markets. The interactions between prices and quantities in an equilibrium yield a rich set of implications for any asset pricing model, when an explicit link between economic fundamentals and the dynamic properties of asset returns and volume are derived.
By exploiting the relation between prices and volume in the dynamic equilibrium model, one can identify and construct the hedging portfolio, which can be used by all investors to hedge against changes in market conditions. This hedging portfolio has considerable forecast power in predicting future returns of the what is trading volume in stock market portfolio and its abilities to explain cross-sectional variation in expected returns is comparable to other popular risk factors such as market betas, the Fama and French SMB factor, and optimal forecast portfolios.
The presence of market frictions, such as transactions costs, can influence the level of trading volume and serve as a bridge between the market microstructure literature and the broader equilibrium what is trading volume in stock market pricing literature.
If price and quantity are the fundamental building blocks of any theory of market interactions, the importance of trading volume in understanding the behavior of financial markets is clear. However, while many economic models of financial markets have been developed to explain the behavior of prices — predictability, variability, and information content — far less attention has been devoted to explaining the behavior of trading volume.
In this chapter, we hope to expand our understanding of trading volume by developing well-articulated economic models of asset prices and volume and empirically estimating them using recently available daily volume data for individual securities from the University of Chicago's Center for Research in Securities Prices.
Our theoretical contributions include 1 an economic definition of volume that is most consistent with theoretical models of trading activity; 2 the derivation what is trading volume in stock market volume implications of basic portfolio theory; and 3 the development of an intertemporal equilibrium model of asset market in which the trading process is determined endogenously by liquidity needs and risk-sharing motives.
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We think that eukaryotes in general (even if they only have one nucleus per cell) have one part of the genome that they play around with and another part thats more stable. Over the past 15 years weve published a series of papers on genome dynamics in eukaryotes and started to wonder: what about the bacteria and archaea.
We went trolling through the bacterial and what is trading volume in stock market literature to see if we could find phenomena that challenged the textbook version of bacterial genome replication: one copy of a genome gets replicated into two; the cell divides with each daughter inheriting one copy. In examining the literature on ploidy levels across bacteria and archaea, we find that some are monoploid while many species have multiple copies of their genomes in a single cell.
The queen of them all is Epulopiscium which is nearly a millimeter long, lives in the guts of surgeon fish, and has 1000s of copies of its genome.