What are the differences between free float and shares outstanding in the context of cryptocurrency trading?

3 answers

• Nov 27, 2021 · 3 years ago
  Free float and shares outstanding are two important concepts in cryptocurrency trading. Free float refers to the number of shares available for trading in the market, excluding those held by insiders or restricted from trading. On the other hand, shares outstanding represent the total number of shares issued by a company, including those held by insiders and restricted shares. The difference between free float and shares outstanding is that free float only considers the shares available for trading, while shares outstanding includes all the shares issued by the company. The concept of free float is particularly relevant in cryptocurrency trading as it affects the liquidity and volatility of a cryptocurrency. A larger free float generally indicates higher liquidity and lower volatility, as there are more shares available for trading. On the other hand, a smaller free float can lead to lower liquidity and higher volatility, as there are fewer shares available for trading. Investors often consider the free float of a cryptocurrency when making trading decisions, as it can impact the ease of buying or selling the cryptocurrency. Shares outstanding, on the other hand, provides a broader view of the ownership structure of a cryptocurrency. It includes the shares held by insiders and restricted shares, which may not be available for trading in the market. This information can be useful for investors to understand the distribution of ownership and potential influence of insiders on the cryptocurrency's price and market dynamics. Overall, free float and shares outstanding are important concepts in cryptocurrency trading that can impact the liquidity, volatility, and ownership structure of a cryptocurrency.
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• Nov 27, 2021 · 3 years ago
  Alright, let's break it down. Free float and shares outstanding are two terms you'll often come across in the world of cryptocurrency trading. Free float refers to the number of shares available for trading in the market, excluding those held by insiders or restricted from trading. Shares outstanding, on the other hand, represents the total number of shares issued by a company, including those held by insiders and restricted shares. So, what's the difference? Well, free float only considers the shares available for trading, while shares outstanding includes all the shares issued by the company. This means that shares outstanding gives you a broader view of the ownership structure of a cryptocurrency, including the shares held by insiders and restricted shares that may not be available for trading in the market. Now, why does this matter? The concept of free float is particularly important when it comes to liquidity and volatility. A larger free float generally means higher liquidity and lower volatility, as there are more shares available for trading. On the flip side, a smaller free float can lead to lower liquidity and higher volatility, as there are fewer shares available for trading. Investors often take into account the free float of a cryptocurrency when making trading decisions. It can impact the ease of buying or selling the cryptocurrency, so it's definitely something to keep in mind. Shares outstanding, on the other hand, provides valuable information about the ownership structure of a cryptocurrency. It gives you insights into the distribution of ownership and the potential influence of insiders on the cryptocurrency's price and market dynamics. So, there you have it. Free float and shares outstanding are two important concepts in cryptocurrency trading that can affect liquidity, volatility, and ownership structure.
  1863621
• Nov 27, 2021 · 3 years ago
  When it comes to cryptocurrency trading, understanding the differences between free float and shares outstanding is crucial. Free float refers to the number of shares available for trading in the market, excluding those held by insiders or restricted from trading. On the other hand, shares outstanding represents the total number of shares issued by a company, including those held by insiders and restricted shares. So, what's the big deal? Well, free float focuses on the shares available for trading, while shares outstanding takes into account all the shares issued by the company. This means that free float gives you an idea of the liquidity and volatility of a cryptocurrency, as it represents the shares that are actively being traded in the market. On the other hand, shares outstanding provides a broader view of the ownership structure of a cryptocurrency. It includes the shares held by insiders and restricted shares, which may not be available for trading. This information can be useful for investors to understand the distribution of ownership and the potential influence of insiders on the cryptocurrency's price and market dynamics. So, why does this matter to you as a trader? Well, the free float of a cryptocurrency can impact its liquidity and volatility. A larger free float generally means higher liquidity and lower volatility, making it easier to buy or sell the cryptocurrency. On the other hand, a smaller free float can lead to lower liquidity and higher volatility, making it more challenging to trade. Shares outstanding, on the other hand, gives you insights into the ownership structure of a cryptocurrency. It can help you understand who holds the majority of the shares and whether there are any restrictions on trading. This information can be valuable when making investment decisions. In conclusion, free float and shares outstanding are two important concepts in cryptocurrency trading that can impact liquidity, volatility, and ownership structure. Understanding these differences can help you make more informed trading decisions.
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