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Under Rule 10b-18, the average daily volume limitation is calculated by taking the average daily trading volume of the security over the preceding four weeks. Specifically, it involves determining the total volume of shares traded for the security during that period and dividing it by the number of trading days within those four weeks. This average daily volume is then used to establish limits on the amount of repurchase activity a company can conduct without being deemed manipulative.

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Q: How is the average daily volume limitation under rule 10b-18 calculated?
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