Volume-Weighted-Average-Price

The term, volume-weighted-average-price (VWAP) is a benchmark measurement which indicates a stock’s value weighted against its trading volume over a fixed time frame (normally one trading day).

A VWAP is found by adding the total transaction prices of a stock across a certain time frame and then dividing the sum by the total number of shares traded.

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.