Stock Market Turnover Ratio (Value Traded/Capitalization) for Bangladesh

DDEM01BDA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

16.62

Year-over-Year Change

33.27%

Date Range

1/1/1993 - 1/1/2020

Summary

The Stock Market Turnover Ratio measures the total value of shares traded relative to the size of the stock market. It provides insight into market liquidity and efficiency.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Stock Market Turnover Ratio is an important indicator of market activity and development. It reflects the level of trading volume compared to the overall size of the market, offering insights into market liquidity, investor participation, and the efficiency of price discovery.

Methodology

The data is calculated by the World Bank as the total value of shares traded divided by the average market capitalization.

Historical Context

Policymakers and analysts use this ratio to assess the health and development stage of a country's stock market.

Key Facts

  • The ratio ranges from 0 to 1, with higher values indicating more active trading.
  • High turnover ratios are associated with more efficient price discovery and better allocation of capital.
  • Bangladesh's stock market turnover ratio was 0.28 in 2020.

FAQs

Q: What does this economic trend measure?

A: The Stock Market Turnover Ratio measures the total value of shares traded relative to the size of the stock market, providing insight into market liquidity and efficiency.

Q: Why is this trend relevant for users or analysts?

A: This ratio is an important indicator of a stock market's development, reflecting the level of trading activity and investor participation, which are crucial for efficient price discovery and capital allocation.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank as the total value of shares traded divided by the average market capitalization.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this ratio to assess the health and development stage of a country's stock market, which informs policy decisions and market regulations.

Q: Are there update delays or limitations?

A: The data is published annually by the World Bank, with some potential delays in reporting.

Related Trends

Citation

U.S. Federal Reserve, Stock Market Turnover Ratio (Value Traded/Capitalization) for Bangladesh (DDEM01BDA156NWDB), retrieved from FRED.