What is typically excluded from a stock's float?

The stock's float refers to the number of shares available for public trading in the market. This usually excludes securities that are not freely available for trading by the general public. Securities owned by company insiders, such as executives and employees, are often not included in the float because these shares are typically restricted or subject to regulations, making them less liquid. Insiders may not sell their shares easily or may hold onto them for long-term compensation strategies, thus not contributing to the active trading environment.

This is why option B is the correct choice; it highlights the distinction between shares that are available for trading and those that are held by insiders, which limits their availability on the open market for investors. In contrast, securities held by institutional investors or those traded over-the-counter could very well be part of a stock's float if they are available for public trading. Publicly traded shares are integral to the float calculation, as they indicate the liquidity and marketability of the stock.