Thanks, Sid. The number I'm trying to figure out is the "float" which is the # of shares in actual circulation as opposed to total shares outstanding. In the case of Amazon.com, for instance, the total shares outstanding is about 50MM, but the float is something like 15 or 20MM, one reason AMZN is so volatile. When it trades 5MM shares in a day, the actual volume isn't 10% but more like 30%. Insider shares, large institutional holdings, co. shares, restricted shares, shares hypothecated against options, etc., cannot sell into a rally or buy into a plunge.
If you already know about this, please forgive me for the explanation! |
