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turnover rate investment & finance definition
- The trading volume in a particular stock during a time period (generally one year) as a percentage of the total number of shares of that stock outstanding. The turnover rate adjusts for the differences in outstanding shares and provides a measure of the relative activity in a stock.
- For an investment company, the volume of shares traded as a percentage of the number of shares in the company's portfolio. A high turnover rate may indicate excessive trading and commissions.
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