RE:RE:Good morningDirksidetrack wrote: Good morning Dfly, Been learning about clearing houses, market makers, how securities are used as collateral to the clearing houses from the brokers etc.
Case in point: The main clearing house in the US wanted $4 billion from Robin Hood as collateral to clear trades on Robin Hood's trading platform. Robin Hood only had $700 million. So the clearing house didn't settle a bunch of trades, mostly in Gamestop. Point is that these brokers need to put up collateral before their orders are settled.
So someone is accumulating oyl shares and it appears that 40 million or so shares ended up in the public float last week. The clearing house would need the shares from the seller and the cash from the buyer, through their respective brokers, before the trades were settled.
Ok, now I'm getting to my question: For public float to increase, would the shares necessarily have to go through the clearing house? Or is there a back channel? If the shares necessarily have to go through a clearing house then both the buyer and seller are clearly identified with the transaction clearly recorded. So whoever had access to that info would know precisely who was accumulating. My wild, unverifiable hunch, is that somebody is accumulating oyl cheap so that they can create an ETF out of the Guyana play. An ETF that would include a basket of shares of the major players that would include service companies, subsea equipment companies, drilling contractors and of course oil companies.
So oyl and fec may not be the only great deals right now. If someone is creating an ETF and the ETF had high demand volume then shares of every company in the ETF would see high demand. Just throwing this out there as a wild, crazy hunch that may be out to lunch. If it's out to lunch then please advise anybody who has knowlwdge of how this stuff works. Thanks.
Total shares outstanding are both restricted plus unrestricted.
The unrestricted are technically those available to trade publically.
The company buys back shares or issues new shares which moves the total outstanding up or down.
Restricteed shares can become unrestricted which will increase the public float. For example when an insider sells.
Clearing houses nor intutional purchases do not increase the total shares outstanding and unless they become designated insiders they trade with the same shares as you and I, unrestricted.