Float (finance)
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The free float of a public company is an estimate of proportion of shares that are not held by large owners and that are not stock with sales restrictions (restricted stock that cannot be sold until they become unrestricted stock).
It's usually defined as:
- All shares outstanding
- Less shares held by owners owning more than 5% of all shares (those could be institutional investors, "strategic shareholders", or founders and other insiders holdings)
- Less restricted stocks (granted to executives that can be, but doesn't have to be, registered insiders)
- Less insider holdings -- we assume insiders hold stock for the very long term.
Terms mentioned in article
- Shares outstanding: all shares less treasury stock.
See also
External links
- [Float]
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