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My question regards the Company float. If institutions and mutual funds can own more than 100 percent of the float, would they not totally control the sale of the stock? I have found instances where institutions and mutual funds owned more than 100 percent. In that instance do they own part of the cap? Probably doesn't matter but I am just curious.
I just checked this: by definition float is what is available to the public. Float is calculated by subtracting "outstanding shares", which I believe means publicly owned, from locked-in shares. I am guessing that Mutual Funds own from the "Outstanding Shares" pool? If Mutual Funds own from the Outstanding Shares pool, then are they excluded from the float calculation?
Can someone verify this: Float is all shares issued minus locked-in shares minus outstanding shares?
Are there two calculations of float? One that includes outstanding shares, and one that does not?
Here are a few definitions to start with.
Outstanding Shares: All the shares of a company that has been authorized and issued. These shares have been purchased by investors. These investors have rights and represent ownership of the company.
Locked-In Shares: Of the outstanding shares, these shares are held by employees and governments. Locked-in shares could also be held by promoters, and controlling interest investors.
Restricted Shares: Likely a subset of locked-in shares. These are typically owned by employees who cannot exercise them yet.
Float: is the number of company shares that are available for trading by the general public on the open market. Float is usually a percentage of outstanding shares like 37%, for example. Float excludes shares that are not available for trading, namely Locked-In shares. Float tends to increase over time as more shares become available to the general public.
Float Calculation: subtract Locked-In shares from Outstanding shares.
Free-Float: is a method of calculating Market Capitalization meaning that Market Cap is determined by using float x share price; not outstanding shares x share price.
To answer the question, if Institutions and/or Mutual Funds own more than 100% of the float, then this likely means that these Institutions own Locked-In shares because they are likely "Controlling Interest Investors". This means their shares are not included in the float.
This could imply that if Institutions do own more Locked-In shares than float, then this could mean there is less float available for trading. Stocks with smaller floats are more volatile because of limited liquidity, and a wider bid-ask spread.
To answer the second question, the Locked-In shares that these Institutions own are excluded from counting toward the Market Cap since Market Cap is calculated using Free-Float.
% of Shares Held by All Insider and 5% Owners: 21%
% of Shares Held by Institutional & Mutual Fund Owners: 75%
% of Float Held by Institutional & Mutual Fund Owners: 94%
Number of Institutions Holding Shares: 418
In this instance it appears that Mutual Fund Owners and Institutions hold nearly all of the Float. If that is true.d is that not control of the trading shares of a company?
the Previous Close was $31.99 and the volume of the total trade on the 26th was 28,737,100. Throw in a few traders after opening traders like me and you probably have a Whale trade of about 10% of the Float . Possibly Vanguard? Normal seems to average around 3 to 7 million.