What Will Happen To The Volume When CitiGroup Does A Reverse Split?

This is just some food for thought. The volume over the past two years since the major stock indexes found a low in March 2009 has been exceptionally very light. This past January (2011) the trading volume was lighter than it was in August 2010 which is historically the lighter volume month of the year. Where has all the volume gone? High frequency trading accounts for the majority of the daily trading volume right now. If you ever traded or followed Citigroup Inc. (NYSE:C) you would know that the average volume for this stock is around 490 million share a day. This stock is rumored to have a 10 for 1 reverse split scheduled soon. What is going to happen to the volume in this market after that reverse split? Logic tells us that the overall trading volume will get significantly lighter for the markets.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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