BLTA Authorized, Outstanding, Restricted, Float
Post# of 41413
Quote:
i do not understand what the float is....ive heard to only be worried about "the float" in baby terms whats the difference between the OUTSTANDING SHARES and "THE FLOAT" ?
A/S - Authorized Shares = Number of Shares BLTA is Authorized to Issue. (There is a maximum amount BLTA is limited to). Not all Authorized are Issued.
O/S - Outstanding Shares = Number of Shares BLTA has actually Issued and has Outstanding.
R/S = Restricted Shares = Number of Shares BLTA Issued and Restricted from Trading.
Float = (Outstanding Shares - Restricted Shares) = Freely Trading Shares (Stock prices based on Supply and Demand)
Sample numbers from a Sample Company:
A/S = 4 Billion
O/S = 3 Billion
R/S = 2.3 Billion
Float = (3B - 2.3B) = 0.7 Billion
There are 3 B O/S but only 0.7 B Float, are currently Free Trading (which determine stock price)
Two points worth noting.
1.) There is an inverse correlation between the size of a company's float and the volatility of the stock's price. (Baltia has Small Float, High Volatility).
2.) Normally, investors hate volatility. There is upside and downside volatility. Baltia has already experienced the downside volatility, so only upside volatility is left. Upon Certification, Baltia stock is worth much more, currently at an extremely undervalued price. This is a dream scenario for BLTA investors.
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