The formula to calculate the Stock Volume (Vstock) is:
\[ \text{Vstock} = \frac{\text{DV}}{\text{ASP}} \]
Where:
Stock volume refers to the number of shares traded in a particular stock during a given period. It is calculated by dividing the total dollar volume by the average stock price. Stock volume is an important indicator of market activity and liquidity. Higher stock volumes typically indicate greater interest and activity in a particular stock, while lower volumes may suggest less interest and lower liquidity.
Let's assume the following values:
Using the formula to calculate the Stock Volume:
\[ \text{Vstock} = \frac{1,000,000}{50} = 20,000 \text{ shares} \]
The Stock Volume is 20,000 shares.