In stock-market terminology, what is a company’s free float?

In stock-market terminology, a company’s free float is the portion of its shares available for public trading.

Free float, also called public float, generally excludes closely held shares that are not readily available in the market. Examples can include controlling-founder holdings, government stakes, insider holdings, and strategic cross-ownership, depending on the methodology used by an exchange or index provider.

Free float is different from total shares outstanding. A company may have many shares issued, but a smaller investable portion if major holders retain long-term stakes. Analysts and index providers use float data to estimate liquidity and, in some indexes, to calculate float-adjusted market weights.

The exact number can change when insiders sell, restricted shares become available, or a company issues or repurchases shares. Definitions also vary slightly among jurisdictions and index methodologies, so published float figures should be checked against the relevant provider’s rules.