CAN YOU PLEASE EXPLAIN THE MEANING OF THE MINIMUM TRADEWEIGHTEDPRICE? - ProProfs Discuss
Advertisement

Can you please explain the meaning of the minimum tradeweightedprice?



Asked by Heath, Last updated: Oct 28, 2020

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

There must be a method of calculating the price of a stock based on the shares tradedat particular prices. for an exaggerated example, lets say a stock traded 3 millionshares in a single day. assume 2,000,000 shares traded at $0.90 while the last tradeof the day was for 1,000,000 shares at a price of $1.00. question: did this stock tradeat a minimum of $1.00 that day. if you look at the closing price, you might assume thatthe stock traded at $1.00 and meets the minimum standard. but if you weighted theprices for each trade based on the number of shares traded, you can see from theexample above that the price for the day averaged to something closer to $0.93 (33%of shares x $1.00 + 66% of shares x $0.90). im not sure of the exact method used bys&p/tsx, but the above information gives you an approximate idea.
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.