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Related to turnover rate: Turnover ratio
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.
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The ratio at which a fund or portfolio trades the securities in it. A higher turnover rate indicates active management; if it becomes very high, this may indicate that the broker or manager is trading securities for the sake of collecting more in fees. It is calculated as the trading volume of the fund or portfolio as a percentage of the entire portfolio. See also: Prudent person rule.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
1. 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.
2. 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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
The rate at which tenants or clients depart and are replaced.
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