STOCK SPLITS FOR THE MIDDLE CLASS

摘要

Despite the eight-year bull market in equities, more and more market analysts are referring to the trade in U.S. equities as weak, depressed and even worse. A major national newspaper last spring asked: "If No One's Trading Stocks, Is it Really a Rally?" The article noted that "few investors have come to the party," citing recent average daily volume of 6.9 billion shares. The real story is that the average daily share volume for the 12-month period ending April 30 is down about 9% from the same period four years ago, averaging about 6.7 billion shares per day (excluding auctions and odd lots). However, average notional volume -the actual dollar amount that is traded each day -rose 15% during that same period to more than $283 billion. Simply put: the share liquidity in our market is down while the notional turnover is up.