Trading volume, traded value and company revenue: follow three share trades

Read quantity and price on each row

Nasdaq defines volume as the number of shares changing hands. Our table contains three completed executions in a chosen practice period, for the same fictional share and currency. Each row has both a buyer and a seller. No new shares are issued: existing shares change hands between these parties.

The period’s volume is 60 + 40 + 100 = 200 shares. It is not 400 because each share has a buyer and seller. There are three executions, which is a different measure from the share quantity. An order proposal that never executes is not one of these three observed trades.

If the table does not fit, scroll it sideways.

Each execution contributes its own price

Multiply quantity by price on each row, then add the amounts: 1,500 + 1,040 + 2,400 = SEK 4,940. This is traded value for the model period. Because execution prices differ, the last price alone cannot reconstruct the payments made in the earlier trades.

The last price, 24, multiplied by volume, 200, gives SEK 4,800. That is SEK 140 below the model’s actual traded value. The volume-weighted average price is instead 4,940 / 200 = SEK 24.70. The unweighted average of 25, 26 and 24 is 25, giving each execution equal weight despite different quantities.

Company revenue comes from different information

In this scenario, SEK 4,940 moves between the shares’ buyers and sellers. It is not customer sales revenue for the company. We have no information about what the company sold to customers during an accounting period. Company revenue therefore cannot be calculated from this execution table.

Read the heading and unit before interpreting a number: shares, traded value in money or company sales in money. Check the period and whether the information covers one venue or a broader aggregation. High observed volume does not establish the next share price or how your own future order attempt would execute.

Write three labelled lines when checking a source

Use the headings volume, traded value and company revenue in your notes. For this information they are 200 shares, SEK 4,940 and unknown company revenue. Also record three executions and the chosen period. An isolated number without these labels can easily be used to answer the wrong question.

Investiq’s company guide helps you ask questions about a company page. This lesson does not guarantee that a version of the app supplies execution lists, volume-weighted averages or every trading venue. The task works with the fictional information provided here. Continue with revenue and profit to understand the company’s business rather than shareholder trading.