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Author Topic: Outstanding vs. Float
BroBro
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If anyone has time to briefly explain the benefit of knowing the total floating shares of a stock, or even the whole float concept, I would greatly appreciate it. I want to apply this concept to my technique but Im not sure how. Thanks Everyone!
Posts: 206 | From: silver spring, MD, USA | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
PAUL
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A friend e-mailed this to me. I will comment in a little while.

PAUL

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Float

The number of outstanding shares of a stock excluding shares that are held by officers and major stakeholders that have agreements not to sell until someone else is offered the stock.

Shares Outstanding

The number of authorized shares in a company that are held by investors, including employees and executives of that company. Unissued shares or treasury shares are not included in this figure.

Authorized Shares
The total number of shares a corporation is authorized to sell. This number is specified in the articles of incorporation. All of the shares authorized need not be issued.

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But godliness with contentment is great gain.
For we brought nothing into this world, and it is certain we can carry nothing out.


Posts: 1056 | From: WINSTON, GA. USA | Registered: Sep 2003  |  IP: Logged | Report this post to a Moderator
PAUL
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I think the concept is this.

If there is only 500 sheets of plywood in Florida right before a storm hits the price will go up. Because there will be many people that want some of that plywood.


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WIDGET COMPANY I OWN 10 shares WDGT

If the AS is 1,000 shares. (Authorized by Inc. documents.)
The OS is 800 shares. (actually issued)
The Float is 500 shares. (owned by those that trade in the public market)


News Flash WDGT just found the cure for cancer.

There are only 500 shares available in for the public to buy (the float) of which 10 are mine.

There is a great demand, small supply, the price goes up. I sell at a good prifit.

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WDGT 2nd example

AS 1,000,000,000
OS 800,000,000
Float 500,000,000

I own 10 shares.

GOOD NEWS

SAME DEMAND as in the other example.
BUT SUPPLY is MUCH greater, price will not move as fast.

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Maybe poor examples but I hope it helps.

PAUL


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But godliness with contentment is great gain.
For we brought nothing into this world, and it is certain we can carry nothing out.


Posts: 1056 | From: WINSTON, GA. USA | Registered: Sep 2003  |  IP: Logged | Report this post to a Moderator
Wallace#1
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Paul,

I couldn't have said it better myself!!!


Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004  |  IP: Logged | Report this post to a Moderator
   

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