Share Structure: Using It To Your Advantage
We suggest that you consider share structure as both a backward-looking litmus test and as a forward-looking assessment of volatility. Share structure analysis provides the most benefits from the former and represents a relatively quick and easy means of gauging company strengths and weaknesses that can otherwise be assessed by more comprehensive analysis. If a microcap company’s share structure is tight and not displaying any red flags, it provides reasonable support (a Bayesian indication) that company management is aligned with shareholder interest.