WHY WOULD A STOCKS MARKET PRICE BE MORE VOLATILE IF THECOMPANY HAS A - ProProfs Discuss
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Why would a stocks market price be more volatile if thecompany has a smaller public float?



Asked by B.Isabellae, Last updated: Nov 15, 2021

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John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

The fewer the number of shares and shareholders, the harder it becomes to buyshares at a reasonable price. the larger the float, the greater the chance that therewill be sellers who are asking for a price that is relatively stable compared to a stockwith a small float.on the flip side, since the float is small and may not garner much interest in otherinvestors, it may be hard to sell your shares at the price you want and you may have todrop your asking price to close the sale.these conditions can produce some very erratic price changes in the market place.
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