High turnover
Stocks that trade a large share of their existing shares each day.
Turnover is trading volume divided by the number of shares that exist. A high-turnover stock changes hands often; a low-turnover one sits in the same pockets for months. It is a measure of attention, not of size: a small company can have high turnover and a giant can have low.
Some strategies use it as a filter, on the theory that heavily traded stocks absorb news faster and more smoothly, so trends among them are cleaner. The logbook tested that theory for one-month momentum and found no convincing evidence of selection. The measure can be computed two ways, from shares outstanding known at the time or from a later database, and the difference was enough to make a published effect vanish.
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Where this word comes up
First needed in the log entry H-044 · Short-term momentum in large caps: no robust edge in our test.
From the same entry: Betting against losers, Liquid names, Momentum, Multiple testing, Relative strength ranking, Shuffle test, The null.