PDSnet Glossary

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Definition

A term to describe a share which has a large number of shares changing hands each trading day. A good example is Naspers which had an average of 792 000 shares at roughly R2400 each trading each day in August 2022. So the value moving through that share was approximately R1,9 billion a day on average. Such shares are the darlings of the institutional fund managers because they can buy or sell vast quantities of shares easily and quickly without impacting on the price. For the private investor, the large volumes add the comfort of knowing that you can always sell out when you want to and very close to the current ruling price in the market. The opposite of a highly liquid share is a "thinly traded" or "tightly held" share where the volumes are very small and there are many days with no volume at all.

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