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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The number of shares available for the public to trade.
Why It Matters
Float is the number of shares actually available to trade - it's less than total shares outstanding because insiders and institutions hold shares they can't easily sell. Low float stocks are more volatile: with fewer shares to trade, big orders move the price dramatically. The GameStop squeeze happened partly because the float was small and heavily shorted.
Key Points
- Float = Outstanding Shares - Restricted Shares (insider/institutional holdings with restrictions)
- Low float + high demand = extreme price moves (potential for squeezes)
- IPO lock-up expiration increases float - often causes the stock to drop as insiders can finally sell
Related Terms
Common Questions
The number of shares available for the public to trade. Float is the number of shares actually available to trade - it's less than total shares outstanding because insiders and institutions hold shares they can't easily sell. Low float stocks are more volatile: with fewer shares to trade, big orders move the price dramatically.
Float is the number of shares actually available to trade - it's less than total shares outstanding because insiders and institutions hold shares they can't easily sell. Low float stocks are more volatile: with fewer shares to trade, big orders move the price dramatically. The GameStop squeeze happened partly because the float was small and heavily shorted.
Float = Outstanding Shares - Restricted Shares (insider/institutional holdings with restrictions)
Low float + high demand = extreme price moves (potential for squeezes)
IPO lock-up expiration increases float - often causes the stock to drop as insiders can finally sell