Definition of Active stocks:
Active stocks are heavily-traded stocks on an exchange. Active stocks are frequently bought and sold, and often have a large number of outstanding shares. Because they are heavily traded, active stocks often have low bid-ask spreads.
Active stocks frequently have a large number of outstanding shares. Because they are heavily traded on a daily basis, and are usually available in high volume, active stocks often have a low bid-ask spread and are usually considered to have high liquidity. Active stocks tend to trade regardless of whether the price of the stock is fluctuating.
Listed stocks (shares) which are frequently and heavily traded on a stock exchange.
How to use Active stocks in a sentence?
- News developments–such as tender offers for the company or positive earnings–or a large number of shares outstanding drive the high volume of trading for active stocks.
- Active stocks are heavily-traded stocks on an exchange or stocks that display a sizeable price movement within a single day.
- There is no specific volume benchmark to define an active stock.
Meaning of Active stocks & Active stocks Definition