PDSnet Glossary

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Definition

A share which has significant volume traded every trading day. The opposite of thinly traded. We recommend that as a private investor you only consider shares which trade at least three times what you want to buy on average each day. Your software allows you to calculate the average volume traded over any period of time. If you want to buy R10000 worth of a share you need to see at least R30000 passing through that share in the market every day, on average. Thinly traded shares are difficult to sell and you may find that you cannot exercise your stop-loss strategy. Heavily traded shares are generally blue chip institutional shares like Naspers which trades about R350m worth of shares every day.

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