In the stock market, the turnover rate of stocks is also an important reference indicator for us to analyze the stock market market. When analyzing the turnover rate, we often hear the term death turnover rate. So what does the death turnover rate mean? Let's take a look with Xiaobian.
What is the death turnover rate
The "turnover rate" is also called the "turnover rate", which refers to the frequency of stock resale transactions in the market within a certain period of time. The calculation formula for the turnover rate is: turnover rate = (a certain period of trading volume / total number of shares in circulation ) * 100%. The turnover rate is one of the indicators reflecting the strength of stock liquidity. Generally, the higher the turnover rate, the more active the stock is, and the stronger the investor ’s willingness to buy the stock, that is, the popular stock that people say. Conversely, if the turnover rate is very low, it means that the stock has a small trading volume and belongs to unpopular stocks. The death turnover rate usually refers to the day when the stock turnover rate reaches more than 50% (usually 70% is the judgment of the death turnover rate), which means that the stock turnover has exceeded more than half of its market value.
What does death turnover mean?
A high stock turnover rate means that stocks have good liquidity. It is relatively easy for investors to buy or sell, and the cash rate will be faster. However, domestic investors are more speculative in trading stocks and make less value investments. Therefore, stocks with high turnover rates are often based on short-term capital transactions. When the stock reaches a 70% d death rate, it means that the trading volume on the day is very large, and the short-term speculative funds are the main ones to buy. Short-term speculators will choose to sell as soon as possible. Therefore, the next trading day in which there is a death turnover rate, the stock will be under great pressure, either up or down, and the probability of a big drop is relatively higher.
I believe that through the introduction of the editor, you should have a better understanding of the concept of death exchange rate. If you have other questions or want to learn more about investment related knowledge, please follow the Followme community.
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