The Stealth Reason Why The Stock Market Keeps On Rising


3- SHRINKING POOL SIZE OF PUBLIC FLOAT 

The stock pool reduction is the one pool least understood or fully appreciated. In 2005 the US markets were changed to a "Float Adjusted Market Capitalization" system. This change in 2016 had the effect of reducing the public float by approximately $1 Trillion. 
 

The market Float is the number of shares actually available for trading. Float is calculated by subtracting the closely held shares -- owned by insiders, employees, the company's Employee Stock Ownership Plan or other major long-term shareholders -- from the total shares outstanding. The Float can be difficult to determine and therefore requires and depends on definitions. The public is unaware of how this is determined and generally have to pay service providers for this information. We encourage you to review our recent 16 minute video outlining the details and possible games being played here.

The size of those who are considered within the "control block" is surprisingly large. Shareholders concerned with control of a company generally include the following:

  1. Officers and Directors and related individuals whose holdings are publicly disclosed
  2. Private Equity, Venture Capital & Special Equity Firms
  3. Shares held for control by another Publicly Traded Company
  4. Strategic Partners
  5. Holders of Restricted Shares
  6. ESOPs
  7. Employee and Family Trusts
  8. Foundations associated with the Company
  9. Holders of Unlisted Share Classes of Stock
  10. Government Entities at all levels except Government Retirement/Pension Funds
  11. Any individual person listed as a 5% or greater stakeholder in a company as reported in regulatory filings (a 5% threshold is used as detailed information on holders and their relationship to the company is generally not available).

Additionally, the following holders' shares are generally considered part of the control block:

  1. Depository Banks
  2. Pension Funds
  3. Mutual Funds & ETF providers
  4. 401K Plans of the Company
  5. Government Retirement/Pension funds
  6. Investment Funds of Insurance Companies
  7. Asset Managers and Investment Funds
  8. Independent Foundations
  9. Savings and Investment Plans
View single page >> |

Disclaimer: Information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.