![]() News catalysts are extremely important when it comes to low float stocks, so keeping track of what’s happening is necessary. They are both good indicators of stock health. News catalysts and volume are important when looking at low float stocks. In-depth webinar on finding low float stocks. Go Deeper:Ĭlick on the webinar below to watch a previous webinar on low float stocks. There is an option to save the parameters you’ve chosen so it’s easily accessible for the next time. You can set different parameters and filters to find things such as: How to Find Low Float Stocksīenzinga Pro offers a Screener tool to find float. Shares outstanding is the total number of shares issued, including shares that are held by shareholders. ![]() ![]() It shows how many shares are available on the market by the general population. Closely-held shares are held by insiders and investors like officers, directors, and employees. What’s the Difference Between Float and Shares Outstanding?įloat and shares outstanding are two ways to measure shares of a stock.įloating stock is measured by taking the total shares outstanding and subtracting closely-held shares. Low float stocks are great for day traders, but not usually recommended for long-term investors. Knowing when to get out is very important, however. Traders who tend to purchase large quantities of stock could have leverage when trading stocks with low float because of how the price fluctuation. Stocks with a low amount of float have a constant fluctuation in price making them favorable with day traders because of the increased level of volatility. This is because there is less supply and bigger demand so the price goes up. Knowing whether or not a stock has low float is important because they typically have higher spreads and higher volatility. This only gives room for a small percentage of shares left for retail investors/traders. Low float stocks often are companies that are primarily held by investors like directors of company employees. Low float stocks typically have around 10-20 million available shares or less. Many tools will provide the float data for you. One way to find float is to take the total number of shares and subtract the number shares that are already owned by insiders. Float refers to the shares that are available. Outstanding shares are shares that are not reserved or claimed. ![]() What is a Low Float Stock?Ī low float stock is a stock with a low amount of outstanding shares available. ![]() These low float stocks make up 15% of the New York Stock Exchange, Nasdaq and OTC Markets stocks. These stocks are defined as stocks which have fewer than 20,000,000 shares trading and are subject to significant price swings. Keep reading on to find out what low float stocks are and whether or not it’s a potential investment for you.Īs of April 5th, 2022, there were 1,563 low float stocks. The news strongly impacts this kind of stock because of its supply and demand ratios. If news breaks and the price falls, there is not much cushioning to help bring the price back up. Low float stocks have high volatility making them desirable to some but they can be scary to others because of the lack of available shares. ![]()
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