and may I add there is also the authorized shares (AS) as well
a company may have an AS of 100 million, OS of 60 million and a float of 40 million..
Interpreted - the AS is for a company to issue if needed, but they hold this back from issuing out for trading. SOmetimes they want to have AS for future aquisitions or expansion..........the OS is shares that are tradable or restricted, but issued to shareholders....the float is what are the loose shares out there tradable........
Sometimes a company will have restrictions on shares, which amkes the float less......in the example above, the OS is 60 million, but 20 million may be held by an insider, which leaves 40 million in the float......it is important to pay attention to form 3,4,5 filings becasue these will sometimes change the float, or OS.....and sometimes a company will announce in an 8-k filing that they are increasing the AS or OS.....
Form 3.4.5 filings can show an insider either buiyng or dumping shares......Look in the form 4 filing, if has a letter D or a letter A next to the amount of shares that are being bought or sold by an insider......
If you see alot of shares witht he letter A next to it in the form 4, it is a good thing. It means an insider is buying and the stock price has a good chance of going up. If you see a D next to the number of shares, it could make the stock go down, as that is an insider either dumping shares or it could be that he just wants to cash in on his shares just to make some money. it also could mean that there's nothing big that;s about to hit with the company, making the price of shares go up, so he is selling......I stress, you cannot go off of form4's alone..... becasue sometimes it is just that, someone needing money or it could be a CEO is leaving the comapny and wants to cash in, though the comapny is doing well......but often an insider spending alot of moeny to buy shares is a great sign and the stock will most likely be heading up.
