Relationship between Trading Volume and Stock Return Volatility: A Descriptive Study

The present paper is an Endeavour to test whether there is a relationship between trading volume and stock return volatility or not by doing thorough analysis of respective review of literature. For this purpose various articles of different time horizon were analyzed. Most of the studies observed a positive contemporaneous relationship amoung the above said variables and both the variables have impact on each-other with bi-directional impact. But some studies have found only uni-directional impact among the two variables. These studies conclude that stock price is determined through market demand and market supply. During the initial day of week market remains at peak in comparison to later days of the week.