7/28/2023 0 Comments Stock float![]() ![]() High FloatĪ stock doesn’t become ‘high float’ once it passes a certain number of shares available. The number of shares available to trade determines whether a stock is high or low float. (I guess there are also medium float stocks, but who cares about them?) In general, I think of high float and low float stocks. Stock float is one of the big things I consider when I put a stock on my watchlist. It works exactly the same when trading penny stocks. If demand is low and supply is high, prices go down. If demand is high and supply is low, prices go up. This can have a huge impact on a stock’s price movement. When the float is low, there are fewer shares to trade. Stock float is one of the most important things I look at in a trade.īenefits of Understanding Stock Float for Traders ![]() Closely held shares are shares owned by major long-term investors and insiders. That’s so they can raise more funds down the road without having to get shareholder approval.įor stock float, calculate the outstanding shares minus restricted shares minus closely held shares. Typically, a company issues fewer than the authorized number. Management needs to get shareholder approval to increase the number of shares. This is the maximum number of shares a company can legally offer. When a company goes public, its board authorizes the creation of a certain number of shares. Stock float is the number of freely traded shares of a particular stock.
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