What does a turnover rate of over 50% mean?

Among the basic indicators of the stock market, turnover rate is one of them. Tell everyone about it. What does a turnover rate of over 50% mean?

Stock turnover rate = number of shares traded today/total number of shares in circulation * 100%.

The high turnover rate can only show that the stock is active in trading today, and the number of shares traded in the stock is large, which does not mean that it can be bought and sold.

Theoretically, you can buy at a low turnover rate and sell at a high turnover rate, but this is relative, not dogmatic, because what is high and what is low is not what you and I think, and it is ultimately determined by the market.

50% turnover rate means that the turnover rate is relatively high, and new main players are involved. If it is in the process of rising, the new main force will push the stock price up, if it is in the process of falling, it will fall.

Is the stock turnover rate as high as possible?

1, the higher the turnover rate of a stock, which means that the more active the trading of this stock is, the higher people's willingness to buy this stock. This is a active stock; On the other hand, the lower the turnover rate of a stock, it shows that this stock is not very popular and belongs to an unpopular stock.

2. The high turnover rate generally means that the stock has good liquidity and it is easier to enter and exit the market. There will be no phenomenon of wanting to sell without thinking about buy buy, and the liquidity is strong. However, it is worth noting that stocks with high turnover rate are often the targets of short-term capital pursuit, with strong speculation, large stock price fluctuations and relatively large risks.

3. Combining the turnover rate and the stock price trend, we can make some predictions and judgments on the future stock price. The sudden increase in the turnover rate of a stock and the enlarged trading volume may mean that some investors are buying in large quantities, and the stock price may rise accordingly. If a stock continues to rise for a period of time and the turnover rate rises rapidly, it may mean that some profit-seekers want to cash out and the stock price may fall.

4. The trading volume of relatively high-end stocks suddenly increased, and the willingness of the main distribution was obvious. However, it is not easy to release the volume at a high level. Generally, when there are some favorable conditions, the trading volume will be released, and the main force can successfully complete the distribution. There are many examples

It is natural that the turnover rate is high in the initial stage of IPO. Once staged the myth of unbeaten new shares. However, with the changes in the market, it has become a reality for new shares to open higher and lower after listing. Obviously, it can't be concluded that high turnover rate will definitely rise, but high turnover rate is also an important factor supporting the stock price rise.