Visible Supply

Visible supply is the amount of a security that is available for trading on the open market. It is calculated by subtracting the number of shares held by insiders and institutions from the total number of shares outstanding.

Visible supply is an important indicator of liquidity, as it represents the amount of shares that can be bought or sold without significantly affecting the price. A low visible supply can make it difficult to trade a security, as there may not be enough shares available to meet demand.

Visible supply can also be used to identify potential trading opportunities. For example, a security with a low visible supply may be more likely to experience a short squeeze, as there are fewer shares available to short.

It is important to note that visible supply is not the same as total supply. Total supply includes all shares of a security, regardless of whether they are held by insiders, institutions, or the public. Visible supply is a subset of total supply, and it is only the shares that are available for trading on the open market.

Visible supply is a valuable tool for investors and traders. It can be used to assess liquidity, identify potential trading opportunities, and make informed investment decisions.