By Matthew Makowski The number of shares of a stock available to traders is known as “floating stock.” So naturally, low float stocks are securities with fewer than average shares available. But you won’t find low float stocks on the major exchanges.
To be listed on the New York Stock Exchange, companies need to have at least 1.1 million publicly traded shares. And the Nasdaq requires at least 1.25 million shares be made available. This is to ensure a certain level of liquidity. That can reduce volatility. It also reduces the size of spreads. And all of this can help prevent some level of …read more
