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To: Sal Milani who wrote (7222)4/4/1998 1:49:00 AM
From: Gordon Quickstad  Respond to of 14162
 
Shares outstanding is the number that have been issued and sold. The float is the number available for daily trading. Some shares held by insiders are restricted in that they can't be sold (or "dumped") into the open market for a period of time. This keeps insiders who have gotten certain shares at a very low price from converting them into cash and at the expense of the public and depressing the stock price. A small float makes the stock more volatile and implies that insiders own a great deal of stock. This is probably an imperfect explanation; others please add your takes on this question.



To: Sal Milani who wrote (7222)4/4/1998 2:20:00 AM
From: Jeff924  Respond to of 14162
 
Float doesn't count the shares owned by insiders and company. At current situation, a company stock buyback program is very important. VVUS 2M shares buyback program will reduce the float even more and increase the chance of a classic short squeeze game.