Series 7 - General Securities Representative Exam
ABC corp is a public company. There are 10,000,000 shares authorized with 5,000,000 shares outstanding. The 6 founders own 4,000,000 shares in total. Which of the following BEST describes ABC corp's stock?
Short Squeeze StockA
Insider Trading StockB
Low Float StockD
A stock's float is the number of shares actually available for trading. Since the insiders have 4 million of the possible 5 million shares that are available for trading, this is a low float stock