Share turnover is calculated by dividing the total number of shares traded over a particular period by the number of shares outstanding during that period. It can help understand how easily a shareholder can find a buyer or seller for that asset in the open market. It has a major significance and acts as one of the indicators in the stock market.Definitions: Share turnover is a measure of liquidity, which signifies the relative ease with which an investor can easily convert a share into cash. In simple words, it helps the stock investors to understand if it is an ease in time to buy or sell stocks. Share turnover helps the stock investors to understand the ease of liquidating the stocks against the money. Techniques such as Stock Split can be performed to reduce the share prices.
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