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what is the float of a company's stock? is shares outstanding stands for shares that are avaiable in common stock to buy?

2007-01-12 16:51:51 · 4 answers · asked by David 2 in Business & Finance Investing

4 answers

An example might be the best way to illustrate this.

Suppose a company is going public with 2 million shares. 1.5 million shares are sold to the public. The other .5 million shares are sold to company officers and employees. However, those shares are restricted. For example, lets say the officers and employees are not allowed to sell those shares for six months.

So, the float is 1.5 million shares - those are the shares on the market. However, the outstanding shares are 2 million.

Six months down the road, the restriction time is complete and the other 0.5 million can be sold. At that point, the float and the outstanding are the same: 2 million shares.

2007-01-12 18:09:35 · answer #1 · answered by Bryan J 4 · 0 0

In business, the shares outstanding (example) is the total of all issued shares less any treasury stock

In the United States, a treasury stock or reacquired stock is stock which is bought back by the issuing company. It reduces the number of outstanding stocks on the open market ("open market" including insiders' holdings).

2007-01-12 19:57:53 · answer #2 · answered by danielpsw 5 · 0 0

When a company thinks of floating shares, it is Authorized to float certain amount which is called the Authorized shares. Out of this it floats certain percentages which is subscribed by the investing public which is called shares outstanding, free floating shares or shares subscribed and free floating.
Last time I answered this question to you and you gave 10 to a dud called Politician who answered it wrong with some gobbledegook numbers which looked like he was on drugs when answering this question.

2007-01-12 21:30:34 · answer #3 · answered by Mathew C 5 · 0 0

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2017-03-01 03:38:08 · answer #4 · answered by Owens 3 · 0 0

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