Question

Smith Enterprises recently was profiled on a financial information website and touted as a ""hot"" growth stock. You acquired the stock quote shown here from that website.

Smith Enterprises (NYSE: SME)
Last Trade: 51.63
Day's Range: 47.22 - 51.96
Trade Time: 4:00 PM ET
52wk Range: 25.48 - 60.71
One-Day Stock Return: 11.58%
Volume: 1,419,317
Prev. Close: 46.27
Avg. Vol. (3m): 629,072
Open: 47.25
Market Cap: 1.63B
Bid: N/A
P/E (ttm): 25.43
Ask: N/A
EPS (ttm): 1y
Target Est: 55.40
Div. & Yield: 0.20 (0.40%)

How heavy was the trading of Smith's stock today relative to the normal level of trading?

A) Relatively light trading
B) Relatively heavy trading
C) Average trading

Answer 1

Today's trading volume for Smith Enterprises was significantly higher than the average, indicating relatively heavy trading activity.

Step-by-step explanation:

The trading of Smith Enterprises stock today was relatively heavy compared to its normal level of trading. The volume for the day was 1,419,317, whereas the average volume over a 3-month period (Avg. Vol. (3m)) has been 629,072. Considering that the day's volume is more than double the average volume, we can conclude there was a significant increase in trading activity, possibly influenced by the company being profiled as a "hot" growth stock.