Stock Float

A stock’s float (often called free float) is measured as the number of shares that are actually available for public trading.

The basic calculation

1. Start with Shares Outstanding
2. Subtract shares that are not realistically tradable, like:

• Insider/management shares (officers/directors)
• Restricted shares (locked up, not freely transferable)
• Strategic/controlling stakes (a parent company, a founder with control, government holdings)
• Sometimes other “stable” long-term holdings (depends on the data provider’s rules)

So, roughly: Float≈Shares Outstanding−Restricted / Insider / Control Blocks\text{Float} \approx \text{Shares Outstanding} - \text{Restricted / Insider / Control Blocks}Float≈Shares Outstanding−Restricted / Insider / Control Blocks

Two related terms people mix up

• Shares outstanding: all shares issued and held by everyone (public + insiders + institutions).
• Float: the portion that can trade freely.
• Free-float market cap: Float×Share Price\text{Float} \times \text{Share Price}Float×Share Price