| Turnover
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1. In accounting, the number of times an asset is replaced during
a financial period. Often used in terms of inventory or accounts receivable
turnover.
2. In the context of securities, for either a portfolio or exchange,
the number of shares traded for a period as a percentage of the total
shares.
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In
accounting, a quick turnover is desired, this shows that inventory
is not sitting on the shelves for too long.
With securities, especially in a portfolio, a small turnover is desired
as the greater it is, the larger the commissions are for the broker.
When a broker unethically generates numerous trades solely in order
to increase commissions it is called "churning".
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Dictionary
