Volume weighted average price (VWAP)

What is Volume weighted average price (VWAP)?

Volume weighted average price (VWAP) meaning Benchmark for trading efficiency. It measures the average price at which a share is traded in the market over a period, and can be compared against the price actually achieved by a fund manager. VWAP is calculated by adding up the monetary value traded for every transaction (price times number of shares traded) and then dividing by the total number of shares traded in the period.

 

reference: mercer.com