What are the differences between float and outstanding shares in the context of cryptocurrencies?

1 answers

• Dave SadlerDec 08, 2024 · 7 months ago
  Float shares and outstanding shares are two terms that often come up in the world of cryptocurrencies. Float shares refer to the number of shares that are available for trading in the market. These shares can be freely bought and sold by investors. Outstanding shares, on the other hand, include both the float shares and the shares that are held by insiders or restricted from trading. The difference between float and outstanding shares is important because it can impact the liquidity and value of a cryptocurrency. A higher number of float shares generally means there is more liquidity in the market, which can make it easier to buy and sell the cryptocurrency. On the other hand, a significant number of outstanding shares can indicate that a large portion of the supply is held by insiders, which can create scarcity and potentially drive up the value of the cryptocurrency. It's important for investors to understand the difference between float and outstanding shares in order to make informed decisions when trading cryptocurrencies.
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