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Market Capitalization:

Market value of all of a company's outstanding shares. Market capitalization is calculated by


multiplying a company's shares outstanding by the current market price of one share

If a company has 35 million shares outstanding, each with a market value of $100, the
company's market capitalization is $3.5 billion (35,000,000 x $100 per share).

Floating Share:

Free Float = Outstanding Shares Restricted Shares

Free float is generally described as all shares held by investors, other than restricted shares held by
company insiders. It does not include restricted shares, which are owned by company management,
officers and other various insiders because it's assumed that those shares are being held on a very
long-term basis.

For example: if Company XYZ has 100 million total shares outstanding, and 30 million are restricted
shares, then the free float would be the remaining 70 million shares available for trading (100 million
- 30 million = 70 million

Locked In share:

The share which is not trading are called locked in shares.

Free float is generally described as all shares held by investors, other than restricted shares held by
company insiders. It does not include restricted shares, which are owned by company management,
officers and other various insiders because it's assumed that those shares are being held on a very
long-term basis.

For example: if Company XYZ has 100 million total shares outstanding, and 30 million are restricted
shares, then the free float would be the remaining 70 million shares available for trading (100 million
- 30 million = 70 million

The Impact of free floating on stock market volatility:

OTC

In general, the reason for which a stock is traded over-the-counter is usually because the
company is small, making it unable to meet exchange listing requirements. Also known as
"unlisted stock", these securities are traded by broker-dealers who negotiate directly with one
another over computer networks and by phone

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