Hi Guys I am after a touch of advise as I am a newb. When looking on this site I see alot of you guys aying about volume? what does this mean and is it better to have a high volume or a low volume? also what is a good online broker I can start my dealings with.?
cheers
Posted by BuyTex on :
might refer to share structure: Authorized shares; Oustanding shares; float.
AS = all shares a company *can* issue as dictated during incorporation or amended later (iow, not supposed to be willy-nilly)
OS = shares actually issued; restricted (not for public trade) to insiders and consultants, etc plus nonresctricted
float = shares actually out in the market, available to trade (including what investors own, as they are "available to trade)
might refer to a day's trading totals (or week's etc); iow, "volume today was 5 million shares"
You want to trade in a stock with enough trading volume to exit easily (rule of thumb that many follow is 1 million)
Allstocks has an .edu section on homepage; another source for definitions is investopedia.com.