The Most Traded Stocks On Nasdaq Stock Exchange

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Stock trading is rapidly becoming one of the fastest growing businesses on the planet at the moment, this is largely due to the large gains on offer for those who know their way around the financial market and have a reasonable understanding of how the stock market works.

Experience has shown that the most profitable stocks to trade are the highly liquid ones. This means those stocks that have large volumes in terms of trade. So it is much easier to enter(buy) and exit (sell) market positions at the price you want without waiting for your order to be filled.

Coincidentally those stocks with high liquidity are also the most traded stocks on many stock exchanges. Before we get to listing the most traded stocks, it is important to understand why they are traded more than the rest, and to do that we have to consider the various interpretations of the term “most traded”.

Daily Trade Volume

The first is the interpretation based on Daily Trade Volumes. Liquidity as a concept is greatly determined by the volume of trade generated by a particular stock, that is, the number of times a stock change hands per day.

Stocks that generate high volumes are the bread and butter of traders because of the ease at which they can buy and sell without taking a hit. This in turn leads to more and more traders getting involved in them, further increasing their trade volumes and its liquidity.

Popularity of Stock

Another interpretation is by ascertaining the popularity of certain stocks among day traders and owners of long term portfolios.

Some stocks are generally more volatile, i.e. their prices fluctuate throughout the day and these kinds of stock are preferred more by the day traders, because due to the volatility of the prices, they stand a higher chance of making profits before the close of market for the day. These stocks generate high trading volume among day traders.

The Long Wait for Profit

 On the other hand, some stocks are preferred by long-termers because of the incremental gains they will accrue over time from owning the stocks.

From the above illustrations, it is obvious that determining the most traded stocks comes down to the volumes of trade they generate, be it daily or over a period of time.

Volume in the market overall is susceptible to changes over time. It is historically low around Christmas and New Year’s Day and other important holidays, presumably because investors and traders take vacations during those times, and there’s little by way of corporate news announcements to shift the market prices.

6.5 Billion Shares

According to The Wall Street Journal, Since the beginning of the market year, on average, close to 6.5 billion shares, are traded on the U.S. stock exchanges daily. On the surface, that might look like a lot of liquidity, but realistically, not all the stocks are created equal. Large companies are responsible for most of that trading volume.

The year-to-date combined average volume of the 10 most actively-traded companies on the Nasdaq Composite was more than the combined volume of the least-traded 250 companies, this is according to FactSet.

 This phenomenon was explained by a stock market expert Joe Salluzzi, co-founder and head of equity trading at Themis Trading Group. He opined that

“Lack of liquidity among smaller companies means that they are passed as investments because trading costs can get too high. Another problem is during panic times, when people try to rush to the exit—it’s a lot narrower for smaller companies,”

Larger companies have for a long time, enjoyed a lot more liquidity than their smaller counterparts, and this in general, correlates with their market capitalization.

Among mega capitalization stocks (firms with a market capitalization of $100 billion or more), the following companies’ stocks are among the most traded on the Nasdaq stock exchange markets.

NVIDIA- Market Cap.: $ 163.8 Billion – Stock symbol: NVDA

STARBUCKS- Market Cap.: $ 99.8 Billion – Stock symbol: SBUX

AMAZON Market Cap.: $ 1,035 Billion – Stock symbol: AMZN

Micron TechnologyMarket Cap.: $ 63.2 Billion – Stock symbol: MU

Intuitive Surgical Market Cap.: $ 67.0 Billion – Stock symbol: ISRG

T-Mobile US Market Cap.: $ 73.1 Billion – Stock symbol: TMUS

CME GroupMarket Cap.: $ 76.4 Billion – Stock symbol: CME

ADP Market Cap.: $ 77.3 Billion – Stock symbol: ADP

Intuit Market Cap.: $ 77.9 Billion – Stock symbol: INTU

Booking Holdings Market Cap.: $ 80.8 Billion – Stock symbol: BKNG

Fiserv Market Cap.: $ 82.9 Billion – Stock symbol: FISV

Mondelez International Market Cap.: $ 84.5 Billion – Stock symbol: MDLZ

Gilead Sciences Market Cap.: $ 90.2 Billion – Stock symbol: GILD

Qualcomm Market Cap.: $ 99.6 Billion – Stock symbol: QCOM

Starbucks Market Cap.: $ 99.8 Billion – Stock symbol: SBUX

Charter Communications Market Cap.: $ 110.3 Billion – Stock symbol: CHTR

Texas Instruments Market Cap.: $ 120.0 Billion – Stock symbol: TXN

Broadcom Inc.Market Cap.: $ 126.3 Billion – Stock symbol: AVGO

Amgen Market Cap.: $ 135.5 Billion – Stock symbol: AMGN

Costco Market Cap.: $ 138.5 Billion – Stock symbol: COST

PayPal Market Cap.: $ 139.6 Billion – Stock symbol: PYPL

Netflix Market Cap.: $ 160.9 Billion – Stock symbol: NFLX

Adobe Market Cap.: $ 178.6 Billion – Stock symbol: ADBE

PepsiCo- Market Cap.: $ 202.7 Billion – Stock symbol: PEP

Comcast Market Cap.: $ 203.7 Billion – Stock symbol: CMCSA

Alphabet Market Cap.: $ 1,017 Billion – Stock symbol: GOOG/GOOGL

Intel– Market Cap.: $ 281.3 Billion – Stock symbol: INTC

Facebook – Market Cap.: $ 605.2 Billion – Stock symbol: FB

Apple– Market Cap.: $ 1,400 Billion – Stock symbol: AAPL

Microsoft– Market Cap.: $ 1,428 Billion – Stock symbol: MSFT

These big companies generate the highest trading volumes, thus they have very high liquidity, and hence are among the most traded stocks. With millions of dollars made every day by traders, you’d be wondering the best way to profit from the market. We recommend copy trading for novice investors. You simply copy the trades of experienced traders and make the same gain as they.

 

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Author: Jofor Humani

Peddling words has been a passion beneath the surface. I speak less than I write...naturally. Aside speaking and writing, I walk too...good for your heart they say. I sometimes do not feel like writing. Then I enjoy quiet times which I use to think and stay with family.

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