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ACTIVE STOCKS

What Are Stocks?

In layman terms stocks signify the holders’ partial ownership. A company can raise money for expansion, growth, and new acquisitions by issuing equity and debt instruments. Stocks are equity instruments that allow investors to receive a portion of the issuing company in return for their investment. The stock exchanges are where stocks are bought and traded.

What Are Active Stocks?

Active stocks are the list of stocks on a market with the highest volume of trading, especially on a particular trading day. When pertinent information about a company becomes accessible, a stock is frequently included on the most active list. Being on a list of the most active companies is not necessarily a good thing; this is because the information might be good or harmful, and investors should move appropriately by buying or selling. Stocks from the power sector are very often in the active stock list such as Tata Power share price.

Shares of firms that are included in several indices, including the Nifty 50, are frequently referred to as “active stocks.” These are some of the largest American corporations (perhaps in the world). A large daily trading volume makes companies like Reliance, ICICI Bankd, HDFC Bank etc., active stock.

Determining An Active Stock

Numerous trade journals, newspapers, and financial websites readily provide daily trading volume statistics. The pre-market movers should be available through one’s trading platform, but if the scans are insufficient, the following resources are listed:

  • Moneycontrol
  • Economic Times
  • Livemint
  • Website of stock trading apps

Additionally, active stocks might change over a predetermined time frame. Investor interest may grow when a company announces good news, such as a tender offer, a new product launch, excellent results, and/or strong economic data that affects a certain sector. Price volatility and high trading volume may come from this, making equities exceedingly active. For example, Tata Elxsi was an active stock in the past however, as on date it is not an active stock.

List Of Top Active Stocks – As on 31 October 2022

INFIBEAM
PNB
SOUTHBANK
SUZLON
BANDHANBNK
ZOMATO
HFCL
TATASTEEL
YESBANK
BHEL
VISESHINFO
IDFCFIRSTB
JPPOWER
IDEA
NTPC
TATAPOWER
BANKBARODA
UNIONBANK
KARURVYSYA
RENUKA

How To Use An Active Stock List And What to Keep In Mind

You can really benefit from active stock lists in your investment approach. Numerous financial websites, like Investopedia, offer real-time updates of the most active stock listings. These securities often fall into one of four groups:

  • Stocks with the most active trading volume
  • Most percentage gains and losses, regardless of price or volume
  • The stock’s value divided by the total number of shares traded that day yields the highest daily volume.
  • Stocks constituting Sensex and Nifty 50

It’s critical to keep in mind that these lists are intended to serve as a guide. Don’t rush to acquire or sell all of your shares just because they are the most active stocks on any given day.

Conclusion

Concluding, one might think of active share as a way to quantify how much of a fund is responsible for performance. The amount of work required to produce higher returns is reduced when a fund has a higher active share because it efficiently distributes the work across a larger section of the portfolio. For instance, if the company is the subject of a tender offer or if unexpected news arises.

Every day, active stocks are listed by exchanges and traders along with their volume and gain or loss for the day. Because of their high share count or due to a unique circumstance, stocks may be frequently traded.

FAQs

  1. What Is the Difference Between Active Trading and Day Trading?

The activity levels and position holding periods are the primary distinctions between day trading and investing. While investing involves passive management with a longer-term holding duration that typically ranges from several quarters to years, day trading involves active management with a short-term holding period. Day traders use direct-access trading platforms to concentrate on short-term trades that are completed in a single trading day. Investors typically check their portfolio positions on a weekly to quarterly basis using statements and web-based platforms.

  1. Are Active Stocks Only Important for Day Traders?

Active trading is a technique that entails finding and timing profitable trades, frequently for brief holding periods, in order to “beat the market.” One of the most thrilling tactics is day trading, which involves taking positions and closing them inside the same trading day and therefore, active stocks are important for day traders.

  1. How to identify active stocks?

The most active NSE indicator highlights the equities that saw the most trading activity on a given day. To make wise investment choices, investors can evaluate the trading volume of companies for weekly, monthly, or even daily time periods.