The Relationship between Trading Volume and Stock Returns Index of Amman Stocks Exchange Analytical Study ( 2000-2014)
Introduction ordan know trading in shares since the beginning of the thirties of the twentieth century, where trading was done through the market irregularly by some brokerage firms, until issued Law No. (31) of 1976, under which was established Amman financial market as a market regulator and as a supervisor and an executive at the one (Khatib, 2006). Both the trading volume and stock prices basic rule by which describe the state of the financial market, and investors are keep it out to trace these two variables constantly and alarmingly somewhat due to the adoption of their investment decisions on them, along with the use of these two variables in assessing the performance of the financial market through the volume of information available (Karpio, et-al, 2012). Where the Sun Illustrates (2003) to understand the relationship between trading volume and stock returns in the futures markets and speculative markets is essential for traders in these markets, because the fluctuation in prices affect the volume of trading in futures contracts, as well as the rate of return to take distribution is normal. This study has received the relationship between trading volume and stock returns attention of many researchers, economists, and there are many studies that have been made in different markets in order to test the relationship between trading volume and stock returns, but these studies have been mostly applied in the development financial markets, while it did not have markets emerging among which Arabic enough research into the relationship (Al-Zubaidi and others, 2008). Therefore, this study was to look at the nature of the correlation between trading volume and stock prices in the Amman Stock Exchange.
