Series 7 - General Securities Representative Exam

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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 Stock
A
Insider Trading Stock
B
Diluted Stock
C
Low Float Stock
D

Explanations

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