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An average trading price weighted by the amount traded at each price.
For each included trade, multiply price by traded quantity. Add those transaction values and divide by total quantity. The period, venue and eligibility rules determine which trades enter the calculation. Corporate announcements may use a stated historical VWAP to set an offer or reference price. That formula does not establish that the resulting offer is fair; other terms and valuation evidence still matter.
Imagine two trades: 100 shares at J$10 and 900 shares at J$12. Total traded value is J$1,000 + J$10,800 = J$11,800, across 1,000 shares. VWAP is J$11.80. The simple average of the two prices is J$11, which gives each trade equal importance and misses the much larger second trade. These are hypothetical prices, not a current market quote.
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