We do a lot of research when buying a stock, but it is the complete opposite when we want to sell them, a simple click on the sell button, and the stocks are liquidated or traded for the stocks. We make the selling process much easier by looking at a single metric, the selling price, to ensure profit is made. Let’s talk about one of the selling metrics one must consider when you are liquidating stocks as an investor; the share turnover. This interesting article will involve a simple mathematical formula to understand if it is easy to buy or sell stocks for the investor. Let’s get started, and we will ensure the basic concept is clearer as the article comes to an end.
It helps the stock investors to understand if it is an ease in time to buy or sell stocks.
The formula for share turnover is, Share Turnover Ratio = Shares bought during the trading volume / Share outstanding.
Yes, there are a few ways that can sound helpful in increasing the share turnover. A few ways are persuading large shareholders to release some quantity, stock split, and registering a maximum number of shares with SEBI.