Question

Explain what and how the concepts of work:?

"Float"?

Answer 1

the company is to be float by whole stock is published traded has different default depends up on

the presumed context without a qualifier it may refer to the entire market capitalization of the

company or the only it public traded equity

public float or the unqualified term may also refer to the number of outstanding shares in the hands

of public investors as opposed to company officers directors or controlling interest investors

assuming the insider held shares are not traded these shares are the publicly traded ones. the

float is to be calculated by subtracted restricted shares from outstanding shares for example a

company may have ten million outstanding shares but seven million are trading on the stock

market therefore this company float would be seven millions stock with small floats tend to the more

volatile that those with large floats

large holdings of founding shareholders corporate cross holding and holding of the government

in partially privatized companies are usually excluded while computing the public float