IFLY - travel sales on the web pure play Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IFLY - travel sales on the web pure play

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: electra who wrote (2795)	12/14/1998 12:27:00 AM
From: M.R. Davis	Read Replies (1) of 4761

Hi electra! The float is the number of shares available for trading (other shares outstanding "not in the float" are being held either by insiders or by institutions - not likely to be available for purchase). A small float, like IFLY's float of only 1.4 million shares, means that prices can move up quite rapidly when the market decides it likes IFLY. Imagine what happens when news deemed very postive for the company is released, perhaps a thousand investors start placing orders for 1000 shares each.... where are they going to get them? There are only 1.4 million shares and suddenly there are orders for 1 million of them? Prices move up rapidly so that sellers can be found. Also market makers sell "short" - they sell shares they don't actually have - hoping to cover (buy) those shares a few days later at a cheaper price. However the action of the market makers covering actually drives the price up again as the float is so small. So a small float can lead to very volatile price movements.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next