"why does Motorola average 33,288,300 shares traded daily and yet the price does not swing wildly"?

Question

the price fo motorola stays in a close trading range year year in year out

Answer 1

Volume is less relevant than the pattern that the orders come in.

Motorola is a widely followed stock, and portfolio managers and analysts have a pretty good idea what it should be worth. When it ventures one way or the other they either add to or trim their positions. In the absence of news flow, you would expect a pretty stable price for a large, widely followed company.

Answer 2

There are well over 2 BILLION shares of Motorola stock outstanding (I found numbers ranging from 2.3B-2.5B), so that 33 million per day is only a little over 1% of all shares - not really a massive turnover even though the number seems big. As mentioned in a previous answer, many of those shares traded are by mutual funds, pension plans, etc. where a million shares of a $18 stock is a minor transaction. Also, MOT is not currently one of the "hot" stocks that people trying to make a quick profit are stampeding into or out of, so that tends to keep it from having wild swings.

Answer 3

Suppose my crystal ball were working well, and two weeks ago Thursday I sold MOT short at about $19, but bought it back at around $18.50 near close that Friday and went long that much again. Then when it ran up on Monday, I sold it at $18.75 and went short that amount. On Wednesday, I covered the short at $18.25 and took a break. Then today, I pick it up at the open at around $18.25, well it has grown to $18.87 last I saw. There's enough, more than enough, trading range for some who watch things closely. As for volume, 25 million shares sold yesterday when folks weren't as interested, but 36 million trade today when they are. Sometimes volume is part of the picture. Sometimes people pick their corners when volumes rise and price changes slow--so they think the market is turning a corner on them, or digesting new news. Which is it? The turn or a pause before breaking through to higher (or lower) ground?

Even for non-daytraders, there was enough of a drop from last April through July to have made a bunch of bucks for some, and then a bunch of bucks to have been made from there to October, as well as a bunch of bucks to be made going short again from October to now. Let's see, even a 100 shares shorted at $24 and covered at $19, then 100 shares long at $19 and sold at $26, then a 100 shares shorted at $26 and covered at $18, hmm, that would have been, not counting commissions, $2,000 profit with just a little more than that needed to start.

Motorola has upwards of 2.3 billion shares outstanding, 33 million traded in one day is only about 1 percent and most of that is obviously traders doing what they do, trading.

Answer 4

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Answer 5

Because they have so many shares outstanding it takes a ton of volume to move it wildy, just like Microsoft, Intel, Cisco