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Which shares are not usually considered free floated?1 pointShares available on the mass marketShares owned by insidersShares owned by institutional investors

Question

Which shares are not usually considered free floated?

1 point

  • Shares available on the mass market
  • Shares owned by insiders
  • Shares owned by institutional investors
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Solution

To determine which shares are not usually considered free-float shares, we need to understand the concept of free float. Free-float shares are those that are available for trading in the market and are not held by insiders or significant stakeholders who may restrict the selling of those shares.

  1. Shares available on the mass market: These are typically considered free-float shares since they are available for trading by the public.

  2. Shares owned by insiders: These shares are generally not considered free-float because insiders, such as executives and board members, usually hold these shares for the long term and may not sell them on the open market.

  3. Shares owned by institutional investors: The classification of these shares can vary. While institutional investors hold a significant number of shares, they may still trade them on the market. However, if these investors hold a large percentage, their shares might not be completely free floated.

Final Answer

Shares owned by insiders are not usually considered free-float shares.

This problem has been solved

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