5/20/2023 0 Comments Shares outstanding vs float![]() As a percentage of outstanding stock, the floating stock will be 35 % (3.5 million divided by 10 million = 0,35 multiplied by 100). Therefore, the floating stock is 3.5 million (10 million – 5 million – 1 million – 0.5 million). ![]() However, out of the 10 million shares, 5 million are owned by some large institutions, management owns 1 million shares, and 500,000 shares are contributed to ESPO (employee stock ownership plan). Source: įor example, a company may have 10 million outstanding shares. A company’s float is calculated by subtracting closely-held (shares owned by institutions, management, and ESPOs) and restricted shares from outstanding shares. Closely-held shares, on the other hand, can be ones owned by company insiders, major shareholders, or employees.Īs noted above, the number of outstanding shares does not always represent the floating stock amount. Restricted stocks are ones that are not available for trading for a certain period because they are in a lock-up period following an initial public offering (IPO). ![]() Put simply, a stock’s float tells you how many shares can be bought or sold at the present moment.Ĭalculating floating stock requires you to subtract the number of closely held and restricted shares from the number of outstanding shares. It is not the total outstanding shares, as it excludes any closely held and restricted stocks. Float in stocks refers to the number of public shares available for trading in the open market. ![]()
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