What does the turnover rate reflect?
For values with high and low fluctuation characteristics, we can take an extreme method to understand the meaning of the lowest value and the highest value, so that a certain concept can be grasped more completely.
Extreme situation of turnover rate:
The lowest turnover rate: 0%, which means that no transactions are generated.
The highest turnover rate: 100%, which means that the owner of the stock is replaced by someone else at some time.
When the turnover rate is 0%, it shows that the transaction can not be traded at a certain price (or a certain price period), that is, the transaction party of this price (or this price period) does not agree at all.
When the turnover rate is 100%, it shows that both parties are willing to deal at a certain price (or a certain price period), that is, both parties to the transaction (or this price period) agree.
[Thinking] Which owners of the stocks and cash holders are most likely to trade near?
More articles, please see "English version index"
Philosophical thinking of financial transactions
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