Volume turnover analysis

Chosingkum, I can't agree with you, but you are right in that you have to make a decision as to whether the published number is accurate and what adjustments you have to make.
 
Quote from mokwit:

Chosingkum, I can't agree with you, but you are right in that you have to make a decision as to whether the published number is accurate and what adjustments you have to make.
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This is from page 2 of the book:

Any given company has only a certain number of shares that are actually available for trading. These freely traded shares in the hands of the public are called the float, a shortened version of the floating supply of shares.... ... But every company has a specific number of shares that is actually traded by the public. The float should not be confused with the shares outstanding, which includes both the floating supply of shares and those shares held tightly by the company's management."

Share held by the company's management, they are not traded and there cannot be any turnover of them unless the company sell it to the public which then make them part of the NEW free float number.
 
I agree outstanding and float are not the same thing but I am hinting at something else. I feel that there are a few things that the author does not really understand.
 
You are correct. There are many things I don't understand.

I get the point. You need to know or estimate the number of shares in play to make use of float analysis.

What modifications did you apply to Wood's assumptions?

Thanks for the help!!!!



:p
 
Quote from mokwit:

I agree outstanding and float are not the same thing but I am hinting at something else. I feel that there are a few things that the author does not really understand.
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You are losing me..You clearly have something up your sleeve as its faily well known that Outstanding shares does not equal float..

I doubt you track when various restriction period ends for insiders.Without giving away your classified info,I am guessing you are looking at a companies convertible securities issued,or option/warrants..Regardless,I dont think these instruments dramatically affect a companys Float enough where it is worth drilling dow to that level ..Just my 2 cents
 
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