CAN YOU GIVE ME AN EXAMPLE OF HOW THE PUBLIC FLOAT DIFFERS - ProProfs Discuss
Advertisement

Can you give me an example of how the public float differs fromoutstanding shares?



Asked by Jessica, Last updated: Sep 14, 2021

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

Example:company xyz authorized to issue 10 million shares.company xyz has issued 5 million shares.company xyz currently has 5 million shares outstandingcompany xyz public float 1 millionoutstanding shares are those shares that have been issued and are still outstanding inthe hands of investors. any of these shares could trade in the secondary market. butsome of those shares are generally considered to be unavailable for trading. why?because even though 5 million shares of xyz stock are outstanding, 4 million of thoseshares represent control blocks - the shares are held by those controlling the companyand in order to maintain control, the shares generally remain in the hands of theparticular investor and are not actively traded. so the only shares really available fortrading between people like you and i are the 1 million shares that make up the publicfloat.
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.