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Finance Dictionary and Glossary of Investment Terms
Daily Volume (13-week average)
The average number of shares of a company''s stock traded daily over the previous 13-week period. Daily volume is one indicator of how liquid a security is. A low daily volume could imply low interest in a stock, a limited float (number of shares outstanding) and/or a highly volatile share price, since even relatively small trades will have an exaggerated effect. Low-volume stocks, also known as thinly traded, generally are seen as riskier than more heavily traded shares. Pay special attention to changes in volume; a sudden increase may mean news about the company has just been issued -- or is foreseen by those in the know.