Gross Volume versus Net Volume for US Equities The figure plots quarterly gross trading volume, scaled by shares outstanding, against net trading volume, measured as the aggregate net portfolio reallocation inferred from changes in quarterly institutional holdings. Each series reports the cross-sectional median across U.S. stocks with at least 50% institutional ownership
"Rethinking Volume: The Illusion of Liquidity" by van der Beck, Fu, & Bretscher shows that rising gross volume is driven by high-frequency trades that do not improve long-term liquidity. Net volume better reflects true market depth. spkl.io/63328AIvMk #Liquidity #Markets #Finance