turnover rate

turnover rate definition - business

turnover rate

  1. The trading volume in a particular stock during a 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.
  3. The number of employees replaced as a proportion of the average number of employees.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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