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Glossary

What is Trading volume?

Volume is how many shares changed hands in a day.

The simple explanation

High volume means lots of people are trading a stock, often because of news. Low volume means little interest. A price move on high volume is usually seen as more meaningful than one on low volume.

An example

A stock that normally trades 5 million shares a day jumps to 30 million after an earnings report.

Why it matters

Volume shows how much attention a price move is getting.

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Related terms

Educational information, not financial advice.