Float (finance)

Float (finance)

The free float of a public company is an estimate of the 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).

The free float or a public float is usually defined as being all shares held by investors other than:
* shares held by owners owning more than 5% of all shares (those could be institutional investors, "strategic shareholders," founders, executives, and other insiders' holdings)
* restricted stocks (granted to executives that can be, but don't have to be, registered insiders)
* insider holdings (it is assumed that insiders hold stock for the very long term)

The free float is an important criterionwhat|date=May 2008 in quoting a share on the stock market.fact|date=May 2008

To float a company means to list its shares on a public stock exchange through an initial public offering (or "flotation").

ee also

*Open market
* Outstanding shares
*Market capitalization
*Public float
*Reverse takeover

External links

* [http://www.investopedia.com/terms/f/float.asp Float]
* [http://www.floatcharts.com/FloatCharts/EducationCenter/Hub.htm Float Charts]
* [http://www.indiahowto.com/what-is-free-float.html What is "free-float market capitalization"?]
* [http://annualreport.deutsche-bank.com/2006/ar/stakeholders/shareholders/marketcapitalizationandfreefloat.html Deutsche Bank: Market Capitalization and Freefloat]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Float — or floating may refer to the following:Float* Float (fishing), a bite indicator used in angling * Float, a Cascading Style Sheets attribute. * Float (parade), a decorated vehicle or platform, animal or man drawn or motorized, used in a festive… …   Wikipedia

  • float — The use of funds generated as a result of timing differences in the check clearing system. For banks, float occurs because debits given by the Federal Reserve to a bank s reserve account for checks being cleared can be received prior to the time… …   Financial and business terms

  • Float — The number of shares that are actively tradable in the market, excluding shares that are held by officers and major stakeholders that have agreements not to sell until someone else is offered the stock. The New York Times Financial Glossary * * * …   Financial and business terms

  • float — 1 n 1: an amount of money represented by checks outstanding and in process of collection 2: the time between a transaction (as the writing of a check or a purchase on credit) and the actual withdrawal of funds to cover it float 2 vi of a currency …   Law dictionary

  • finance — fi·nance 1 n 1 pl: money or other liquid resources of a government, business, group, or individual 2: the system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities 3 …   Law dictionary

  • float´ing|ly — float|ing «FLOH tihng», adjective. 1. that floats: »The floating ice shelf was found to abut the grounded ice inland (E. F. Roots). 2. not fixed; not staying in one place; moving around: »a floating population. 3. Finance. a) in use or… …   Useful english dictionary

  • float|ing — «FLOH tihng», adjective. 1. that floats: »The floating ice shelf was found to abut the grounded ice inland (E. F. Roots). 2. not fixed; not staying in one place; moving around: »a floating population. 3. Finance. a) in use or circulation; not… …   Useful english dictionary

  • finance — [n] economic affairs accounts, banking, business, commerce, economics, financial affairs, investment, money, money management; concepts 360,770 finance [v] offer loan money; set up in business back, bank, bankroll, capitalize, endow, float*, fund …   New thesaurus

  • Finance Wales — Infobox Company company name = Finance Wales plc company company type = Public limited company foundation = 2000 location = Cardiff, Wales, UK key people = Ian Johnson – Chairman Sian Lloyd Jones Chief Executive industry = Financial services… …   Wikipedia

  • float — The delay in processing transactions by banks and others which may permit the interest free use of funds for brief periods. Checks that have been credited to the depositor s bank account, but not yet debited to the drawer s bank account. The time …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”