What Is Stock Volume

In this lesson, we discussed what stock volume is and how it can give us insight into the current position and value of a business. The demonstration used Wells Fargo as an example and showed how to find the number of shares outstanding of a company. We learned that the volume listed is the number of shares traded from one owner to another in a single day and that this number alone doesn’t mean much without context. We then looked at a graphical representation of the shares in the company and saw that only a small group of people determine the market price for the entire company, which is just the short-term price and not the value of the company. The takeaway from this lesson is that it is important to understand volume and the context in which it is used in order to get a more complete picture of a business and its value.