What are the differences between outstanding shares and float in the context of digital currencies?
Alexander KoltsovApr 06, 2024 · a year ago3 answers
Can you explain the distinctions between outstanding shares and float in relation to digital currencies? How do these terms apply to the cryptocurrency market?
3 answers
- Imani Ringgold-DabellAug 10, 2021 · 4 years agoOutstanding shares refer to the total number of shares issued by a company and held by its shareholders. In the context of digital currencies, outstanding shares can represent the total supply of a particular cryptocurrency. On the other hand, float refers to the number of shares available for trading in the open market. In the cryptocurrency market, float can be seen as the number of coins that are actively traded on exchanges. While outstanding shares remain constant, the float can fluctuate as coins are bought and sold. It's important to note that not all digital currencies have outstanding shares and float, as some cryptocurrencies have a fixed supply or are not traded on exchanges.
- SANDIYA S AI-DSMar 11, 2025 · 4 months agoWhen it comes to digital currencies, outstanding shares are similar to the total supply of a cryptocurrency, while float represents the coins available for trading. Outstanding shares can be compared to the amount of money printed by a central bank, while float is akin to the money in circulation. In the cryptocurrency market, the outstanding shares of a coin are usually fixed, meaning that the total supply is predetermined and cannot be changed. However, the float can vary as coins are bought and sold on exchanges. This difference is important to understand because it can affect the liquidity and price stability of a cryptocurrency.
- Milan NiroulaJun 29, 2025 · 20 days agoIn the context of digital currencies, outstanding shares and float have different meanings. Outstanding shares refer to the total number of coins in existence, while float represents the coins available for trading on exchanges. For example, let's say a cryptocurrency has a total supply of 1 million coins. If 500,000 coins are held by the company or its founders and not available for trading, the outstanding shares would be 1 million, but the float would be 500,000. The float is important because it determines the liquidity of a cryptocurrency. A higher float means there are more coins available for trading, which can lead to increased liquidity and potentially lower price volatility. On the other hand, a lower float can result in less liquidity and higher price volatility.
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