posted
Okay as im learning how to research, im seeing how important the 10QSB forms are, how ever there are things that I just dont know what they mean or how they relate to each other
so what foes Estimated market cap mean and what does outstanding shares mean and what does float mean and how do they relate to each other Ive read alot of post that people say look for small floats and small O/S I have a few books but none say what they are thanks guys
PCola77
posted
There are 3 main numbers when it comes to counting shares.
The largest is "Authorized shares". This is the most shares that a company can have in existence at any one time. For example, the A/S count for Company ABC is 100million.
The next number is "Outstanding shares". Like the name implies, that is the number of shares that are currently outstanding (meaning, in existence). These include all shares that have been issued, whether restricted, publicly held, or anything else.
The last number is "public float". This number is the number of shares that are currently tradable. In other words, it excludes shares that can not be sold for one reason or another (restriction, for example).
A low float is a positive (to some people) because if there are not a lot of shares in the marketplace, any buying pressure can be exaggerated because the supply is small.
Estimated market cap is simple the number of outstanding shares times the current share price. To put it simply, it's how much the company is "worth" according to investors.
Someone can correct me if I've mis-stated any of that, but I'm pretty sure I hit the major points.
biker0962
posted
thanks, that clears up alot for me
PCola77
posted
No problem. And by the way, I don't say this to be an a**hole, but based on your last two threads, I hope you are not actually trading anything yet. You should be paper trading at this point, and reading as much as you can. If you are tradnig real money at this point, I can almost guarantee that you will lose most of it in fairly short order.
Keep asking questions, it's the best way to learn, but unless you have money that you don't mind tossing out the window, I'd hold off on putting that money at risk yet.
biker0962
posted
No problem PCola, I was paper trading for awhile, Im in 5 stocks right now, cashed out twice on SYDI and going for a 3rd time, cashed out once in Ivot and now holding, PMED Im above profit zone but holding and GSNH im above profit and holding, my 1st couple of picks were not good, FKLT, CETH I was in COPI but got out to early wished Id stayed in on that one-LOL, Paper trading was okay but with out the real risk it just wasnt doing it for me, kinda like playing poker for play money, Im on the positive so far, and learning as I go, I find my self getting very addictive to this, I love the challenge and I know I still have alot to learn, Im a big time online poker player, so the money Im using is all profit from the poker world, but like poker Im a tight wad and will protect my capital, I have been keeping 10% at all times, so that if I get in somethiong and it goes down I can buy back in on the lows Hey hope you had a good news years eve
PCola77
posted
Well, just know that you can't bluff the market
I used to play at PokerStars all the time, then had kids...
A friend of mine that I used to work with quit to play poker online for a living. If you're good enough to do that, more power to you! I don't have the discipline.
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