Take any public company on an exchange.

On this exchange, Person A sells one share of this company to Person B for $X, then Person B sells the specific share he bought from Person A to Person C for $Y. The key thing here is that Person B sold the share he bought from Person A, and not some other share that he had been holding up to this day.

From that group of transactions, is the volume accumulated equal to $X, $Y or $X + Y?

I've read the definition of Volume, but it is unclear to me about whether any intermediate holder of a specific share is counted towards the amount of times that it "changes hands over some period of time".



If Person A, B, and C all transacted on the same trading day, the volume is 1 share + 1 share = 2 shares.

Volume is not in $. Volume resets to 0 after each trading day.

  • What about the dollar volume? Would that be 2 * $500 = $1000? – Mario Ishac Jun 23 '20 at 9:45
  • @MarioIshac Yes it is. They can exceed Outstanding Shares and Market Capitalization respectively. – base64 Jun 23 '20 at 9:48
  • Ah, so for definition's sake both the trading volume and dollar volume are unbounded, and could go as close to infinity as practically possible? – Mario Ishac Jun 23 '20 at 9:55
  • @MarioIshac Yes but there is mandatory Exchange Fee and SEC Fee paid by brokers for each share, even if the broker offers "free trading". – base64 Jun 23 '20 at 9:57

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