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Microcap & Penny Stocks : JAWS Technologies - NASDAQ (NM):JAWZ -- Ignore unavailable to you. Want to Upgrade?

To: Perchance N. who wrote (130)	4/11/1998 12:32:00 PM
From: justaninvestor	Respond to of 3086

Perchance - The float is the # of shares that in reality trade. For example, Jaws has 6.775M shares outstanding. If the insiders control 5M of these shares and, presumably, are not willing to sell right now, then those shares don't really trade and the float would be 1.775M. Not many shares. So now it becomes a supply and demand issue. If Jaws turns out to be a hot commodity, then potential investors are going to have pay more for the stock than if the market were awash in shares. Obviously, the float can change. If the stock quickly moved to $5, then the insiders might want to realize some profit and sell some shares. You also can have shares in escrow that might not be eligible to be traded for several months. Makes sense? Regards bbruin

To: Perchance N. who wrote (130)	4/11/1998 1:52:00 PM
From: Moonglow	Read Replies (2) \| Respond to of 3086

Perchance, Bruin gave you an excellent definition of float. I'll just expound a little on why I think that a low float tends to make a stock more volatile. It all boils down to supply and demand. If there is a lot of demand, and yet few shares for the public to buy....then like any other valuable commodity that is in short supply...the price goes up higher than what it would if there was an ample supply. And so when it finally corrects itself and goes back down to it's more true value, then it just seems to drop faster than would a stock with a lot of shares. For me, personally, I like a stock that has a low float. Juanita