Average Daily Trading Volume - ADTV

  

Categories: Trading, Stocks

The average daily trading volume, or ADTV, helps investors determine if a security falls into the hot shot camp or the ugly duckling camp. For instance, if a stock has been traded a lot in the last week (like sooooo popularrrrr), it will have a high ADTV. On the other hand, the redheaded stepchild stock is hardly being traded at all, giving it a low ADTV as well as a lower price (since not as many people want to buy it). Life’s tough.

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Up Next

Finance: What is Trading Volume?
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Trading volume is the number of shares trading back and forth at a given time.

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A liquid market is a market featuring high trading volumes, i.e. investors actually want to put their cash to work.

Find other enlightening terms in Shmoop Finance Genius Bar(f)