what does the "volume" of a company mean? and why does it go up and down?

Question

under the chart where it shows how much the stock went up or down, there is sometimes a bar chart that says "volume" on it what does that mean and what factors make the volume of a company go up or down?

Answer 1

You are looking at the trade volume. This means how many shares where sold or purchased that day. If nobody sold that stock, the volume is zero. This is an important piece of information, because it tells you when something big is happening or is about to happen. A huge jump in the volume of trading means people are either dumping the stock, or are relly trying to get in before it jumps.

Answer 2

Volume means how many shares were sold and bought during the session so far or at the end of the session. The volume changes depending on how the market as a whole going up or down, good news or bad news?

Answer 3

It indicates how many shares were bought and sold that day. The numbers are not comparable. NASDAQ stocks are double counted.

For example, if I sell 1000 shares on the NYSE and someone else bought 1000 shares -- and 1000 gets added to the volumn.

But if I sell 1000 shares of a NASDAQ stock, then 1000 gets added to volume. When someone else buys those shares, then another 1000 gets added.

Answer 4

Volume is the actual # of shares traded. It means that a lot of shares are changing hands. A large volume might mean a sell off which might cause the value of the shares to fall but it might mean that a lot of investors think its the next BIG thing which would cause the value of its shares to rise.

Answer 5

The volume indicated is the volume traded for the hour, day, week or months depending on the parameters.