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Turnover Rate

Stock market TurnoverTurnover Ratio

Definition
Inventory turnover rate
A measure used to indicate how many times a company's average inventory is sold during a period of time. Computed by dividing the cost of goods sold by the average amount of inventory.
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Turnover Rate
Stock Markets - The volume of shares traded in a year as a percentage of total shares listed on an Exchange, outstanding for an individual issue or held in an institutional portfolio.

Turnover Rate
Turnover is the relationship between the float and the average monthly volume of a stock. The higher the turnover rate, the more volatile the stock and the greater potential for wider swings in price (both ways).
Turnover Ratio ...

turnover rate: See turnover rates in the Mutual Fund Guide.
12b-1 mutual fund: See 12b-1 in the Mutual Fund Guide.
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Turnover rate - The volume of shares traded in a year as a percentage of total shares listed on an exchange, outstanding for an individual issue or held in an institutional portfolio.
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Turnover rate
Measures trading activity during a particular period. Portfolios with high turnover rates incur higher transaction costs and are more likely to distribute capital gains, which are taxable to nonretirement accounts.

A low turnover rate may point to overstocking[2], obsolescence, or deficiencies in the product line or marketing effort.

Portfolio turnover rate
For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.

* What is the ad turnover rate? Advertisers tend to stay with a site that delivers traffic. A high turnover rate may indicate other problems. * Have advertisers made any suggestions?

Portfolio managementInvestment management Portfolio managerInvestment manager Portfolio turnover rateFor an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.

ETFs minimize tax implications for investors because they offer very low turnover rates compared to mutual funds. “Turnover' represents how much of a fund’s holdings are changed over the course of a year through buying and selling.

TeenAnalyst Advice: Investors prefer mutual funds with lower turnover rates because they have lower fees than those with higher turnover rates.

Annual Ratios & Turnover Rates
Quarterly Ratios & Turnover Rates
Annual Return on Equity
Quarterly Return on Equity
Annual Risk Rating/Bankruptcy
Quarterly Risk Rating/Bankruptcy
Business Description
Insiders Report
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Other things being equal, a lower turnover rate is preferable to a higher one. High portfolio turnover can mean high expenses associated with all that trading, as well as higher capital gains distributions.

Consider the fund's portfolio turnover rate. A fund's portfolio turnover rate measures the frequency with which it buys and sells securities. A fund that rapidly buys and sells securities may generate higher trading costs and capital gains taxes.

I have read that there should be a low turnover rate for mutual funds -- preferably no higher than 50% and hopefully much lower. For index funds turnover can be around 5% or lower. Why is high turnover for ETF's ok?

They aim for a quick turnover rate on one or more trades which are 10 to 100 times larger than the normal transaction size.

A turnover rate of 100 means the manager "turned over," or changed, all the portfolio (or that 1% was traded 100 times, or 25% traded four times, or he left half alone and changed the other half every six months).

The average turnover rate while high is still lower than many other trading strategies and lastly, the trading system for momentum trading does not require total accuracy when picking stocks.

An SEC form for semiannual and annual filing by registered investment companies with regard to sales charges, 12b-1 fees, sales of shares, portfolio turnover rate, and so forth.
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A securitization structure frequently used for assets with high turnover rates, such as credit card, trade and dealer floor-plan receivables. It is characterized by having a revolving period and an accumulation (or controlled-amortization) period.

Also this ratio represents an average of all inventories and does not reflect the turnover rate for individual items. The value of this ratio will significantly change based on the industry so only comparisons by like companies will have any meaning.

you'll find net asset values (for both the beginning and end of each period), total returns, and various ratios, including the ratio of expenses to average net assets, the ratio of net income to average net assets, and the portfolio turnover rate.

See also: Turnover, Rate, Market, Stock, Vesting

Stock market TurnoverTurnover Ratio

 
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