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The time now is 08/29/08 - 19:47

What's that meaning when a stock is trading on low volume?


RealCool.BIZ Forum Index -> Investments & Trading -> Stocks

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gaultiero
Apprentice


Joined: 24 May 2004
Posts: 3



PostPosted: 06/23/08 - 07:30    Post subject: Reply with quote

Hello my friends. I am an Indian man living in the United Kingdom. I am owning my own small business, but I am at the same time very interested in trading on the stock market. Everyone is doing it! Can you help me in starting? Tell me what's that meaning when a stock is trading on low volume?
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kerwinn
Apprentice


Joined: 14 Dec 2004
Posts: 8



PostPosted: 07/22/08 - 23:19    Post subject: Reply with quote

When a stock is trading on low trading volume, that means that there is a low liquidity, and that there are not many traders involved in the stock. This can be a bad sign, as it may mean that it is difficult to sell your shares if you decide to do so.
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