DOLLAR VOLUME Meaning and
Definition
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"Dollar volume" refers to the total value or amount of trading activity, expressed in dollars, that occurs within a financial market, such as a stock exchange or a specific security. It is a measure of the overall market activity and liquidity of a particular security or the entire market.
Dollar volume is calculated by multiplying the number of shares or units traded by the price per share or unit. For example, if 100 shares of a stock are traded at a price of $10 per share, the dollar volume would be $1,000. This value represents the total amount of money exchanged during the transaction.
The dollar volume is a particularly important metric for investors and traders as it provides insights into the demand and liquidity of a security. Higher dollar volume suggests greater market interest and liquidity, making it easier to buy or sell shares without significantly impacting the stock price. It is often used to identify actively traded stocks or securities, as higher dollar volumes typically indicate larger trading volumes and more market participants.
Additionally, dollar volume can help investors gauge the market's sentiment towards a security. Increased dollar volume may suggest increased investor confidence, while lower dollar volume may indicate a lack of interest or market uncertainty. Overall, dollar volume serves as a valuable indicator of market activity and liquidity, providing a snapshot of the financial health and trading dynamics of a security or market.
Common Misspellings for DOLLAR VOLUME
- sollar volume
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- rollar volume
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- dillar volume
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- dollzr volume
Etymology of DOLLAR VOLUME
The term "dollar volume" is a combination of two words: "dollar" and "volume".
The word "dollar" has a well-known etymology. It originates from the German word "Thaler", which refers to a silver coin used in the Holy Roman Empire. The term "Thaler" eventually evolved into "daler" in Dutch and "Taler" in German, which was then borrowed into English as "dollar" in the late 16th century.
The word "volume" comes from the Latin word "volumen", meaning a scroll of writing or a book. It evolved into Old French as "volume", which entered English in the 14th century with the same meaning.
When combined, "dollar volume" refers to the total amount or value of something in terms of dollars.
Similar spelling word for DOLLAR VOLUME
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