What Is Turnover Rate?

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Turnover rate (turnover rate) = (turnover in a certain period) / (total number of shares issued) x100%

For example, a stock has traded 20 million shares in a month, and the total share capital of the stock is l billion shares, and the turnover of this stock is 20% this month.

In China, the stock is divided into two parts: the public stock that can be circulated in the two level market and the state share and the legal person share that can not be circulated in the two market. Generally, the turnover rate is calculated only for the stock in the negotiable part, so as to reflect the circulation property of the stock more truthfully and accurately.

According to this calculation, if the share capital of the stock in the above case is 200O million, the turnover rate will be as high as 100%.

In foreign countries, the turnover rate is usually calculated by the ratio between the paction value of a given period of time and the market value at a certain time point.

Turnover often means that there are several situations.

(L) the higher turnover rate of a stock means that the more active the stock is, the higher the willingness of people to buy the stock belongs to the hot stock. Conversely, the lower turnover rate of the stock indicates that the stock is less concerned and belongs to the "cold door" stock.

(2) the high turnover rate generally means that the stock has good liquidity, and it is easier to get in and out of the market. There will not be any phenomenon that can not be bought, sold or sold. It has strong liquidity.

However, it is worth noting that stocks with high turnover rate are also the targets of short-term capital chasing, with strong speculative nature, large fluctuations in stock prices and relatively large risks.

(3) combining the turnover rate with the stock price trend, we can predict and judge the stock price in the future.

The turnover rate of a stock suddenly rises and volume enlarges, which means that investors can buy large quantities and share prices may rise.

If a stock continues to rise for a period of time, the turnover rate is rising rapidly, which may mean that some profit makers must cash in and share prices may fall.

Generally speaking, the turnover rate in emerging markets is higher than that in mature markets.

The fundamental reason is that the expansion of emerging markets is fast, new stocks are more, and investors' investment ideas are not strong enough to make emerging markets more active.

The turnover rate also depends on the following factors:

(L) the mode of paction.

The trading mode of the securities market has gone through various stages, such as oral singing, bidding on the upper board, matching with computers, centralized matching of large computers, and so on from manual to computer.

With the progress of technology and the increasingly powerful technology function, the market capacity and trading potential have been increasingly expanded, and the turnover rate has been greatly improved.

(2) settlement period.

Generally speaking, the shorter the delivery period, the higher turnover rate.

(3) investor structure.

In the stock market with individual investors as the main body, turnover rate is often high, and turnover rate is relatively low in the stock market dominated by institutional investors such as funds.

The turnover rates of major stock markets in the world vary widely.

The first thing we need to do in mining the leading sector is to dig out the hot plate and determine whether the turnover rate is one of the effective indicators of whether it belongs to the hot stocks.

The high turnover rate means that a large amount of funds have recently entered the stock market, with good circulation and stock activity.

Therefore, when investors choose stocks, they can put the stocks that have been doubled or doubled in the recent daily turnover into their own or notebook, and select the best varieties according to some fundamentals and other technical aspects.

First of all, we need to observe whether the turnover rate can be maintained for a long time, because a long time of high turnover rate shows that the capital turnover is large, the sustainability is strong, and the incremental capital is sufficient.

But just one or two days, the handover rate suddenly increased, and then recovered calm. Such a stock is very difficult to operate.

Easy to encounter declines, such as 06 February 24th, 27 days of high handover with the amount of day, does not mean that the sky can see the amount of days, in fact, to attract volume to attract attention, for the bad shipping to absorb the purchase, after a wave of falling!

In addition, attention should be paid to the location of high turnover rate.

High turnover rate can explain both capital inflow and outflow of funds.

Generally speaking, the high turnover rate of stocks at a high level should attract the attention of the stockholders, and it is likely that the main shipments are likely to be the main ones, which will be discussed later. In addition, the high exchange rate at the bottom of the stock price indicates the possibility of large-scale capital building, especially in the case of good fundamentals or favorable expectations.

Investors can pay close attention to stocks that have been keeping relatively high turnover while stock prices are limited (even if the average line is better).

According to the law of the advance of the price parity, the volume of the stock will be enlarged in advance, and the stock price will usually keep pace with the volume, that is, the short-term turnover rate is high, which indicates that the short-term upward energy is sufficient.

In shape, we choose arc bottom, double bottom or multiple bottom, the bottom time is longer, and the main force has enough time to build the warehouse. If we cooperate with various technical indicators, we should pay close attention to it.