FARAH GOHAR REG – 4254 PHASE – I (MBA

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“The Dynamic Relationship between Stock Returns and Trading Volume…. Evidence from Karachi Stock Market” In financial economics, considerable attention has been given to understand the relationship between return and trading volume. Empirically examines the relationship between returns and trading volume for 10 Pakistani stocks. Three measures of trading volume namely number of transactions; number of shares traded and value of shares traded are used. The contemporaneous correlation between returns and trading volume and asymmetric relation between level of trading volume and returns is examined. The dynamic relation as marked by leadlag relationship is also investigated between the returns and volume.