Low float stocks is a list of publicly traded companies with low float. Low float stocks are highly volatile because they have fewer shares for the public to trade than stocks with a high float. Any stocks that have a float of 10 million or less are considered as low float stocks.
The low float stock screener scans for a list of low float stocks trading on the NASDAQ and NYSE that may be of interest to traders and investors. This list is updated regularly to include new symbols that have a low float.
A low float stock is a stock with a low number of shares that are available for the public to trade. Low float stocks are often more volatile than stocks with a high float because there are fewer shares in circulation and therefore the stock is less liquid.
Traders may have to pay higher slippage fees with low float stocks because it is harder to find buyers and sellers that are trading these shares. A trader might have a difficult time exiting his position when no one wants his shares.
The number of shares available may change as time goes by, as the company may issue new issues or buy back its stocks.
There will be more shares available for the public when the company issues more shares, but it also dilutes the value for the existing shareholders.
On the other hand, when the company buys back its stocks, there will be few shares available for the public. When the company buys back its shares when the price is undervalued, it benefits the existing shareholders as the earnings per share would increase.
While there are many day traders and swing traders that make good profits with low float stocks, keep in mind that low float stocks are extremely risky and volatile. Beginners should stay away from low float stocks until they understand how the market works and learn to trade better.
For traders who focus on low float stocks, it is recommended that they trade only the ones with high volume. With high volume stocks, it is easier to get in and out. Traders can cut losses quicker when a trade is turning against them.
Low float penny stocks are the stocks that are trading under $5 and have a low float. These low float penny stocks are included on this list. Please keep in mind some low float penny stocks are extremely risky as their stock price may be driven by one or a few big market players.
Low float tech stocks