Quick Lesson - "Free Floating" Shares
When you start off with trading stocks, you got to understand that the market, is simply put, a large scale demand and supply mechanism. When there is demand, and little supply, large price fluctuation occurs!
Raffles Education has to date issued 516,000,000++ shares.
http://www.listedcompany.com/ir/raffleseducation/web/show.cgi?content=shareholdings&integrate=1
Look at the amount of shares that are held by the top 20 share holders. A whooping 94.25%. It is safe to say that these people won't buy and sell their holdings on a day to day basis. So only 5.75% of all shares are actually being traded daily.
Food Empire, to date issued 389,000,000 shares.
http://www.foodempire.com/investor1.htm
But only 77.96% are held by the top 20 share holders.
Just by simply looking at that, you can conclude which company has more shares that are 'free floating' in the market.
And with the theory of Supply and Demand, with less supply, a slight increase in demand, will cause a larger increase in price equilibrium!
3 comments:
but when the big players come to cash out. There magnitude of the price change will even be greater right?
The institutional shares are not traded in the public market?
There are differences. Institutional trading from another party, directly, or from the open market. From the open market is really what we are interested in.
What do you think of the Gen Int stocks?
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