stock market question - volumes???

Question

first, i dont know if got it right, are volumes and shares the same meaning and if volumes are like shares

how do companies decide on how many volumes they sell on the stock market??
thanks

Answer 1

Companies do not decide on volume (number of) shares that are traded daily on the stock market. Investors buy from other investors.
When the company initially goes public, they get together with their investment bankers and figure how much money they need to raise, how many shares to offer and at what price. After that, its investor to investor.

Answer 2

Volume is the amount of shares traded. The company has no control and little inference over the volume.

Usually when news about the company come out you can see that volume spikes (i.e. more people trade the stock). For example, if a company reports a big recall for its mayor product and the investment community was not expecting the recall then a lot of investors will starting selling the stock and the "volume" will increase. This is just one example of many.

The company does control the # of shares outstanding, that is the total number of shares that are out in the capital markets. Therefore, some might argue that they have some inference over volume. But volume is mostly dependant on the investment community...

Hope it helps,

Answer 3

volume is number of shares traded per given time interval