Summary
Free Float % represents the percentage of a company’s shares that are available for public trading. Shares held by founders, governments, strategic investors, or restricted holders are generally excluded from free float.
This metric helps investors understand how much of a company’s share capital is realistically available in the market.
Why it matters
A higher free float often supports better liquidity because more shares are available for trading. A lower free float can make a share less liquid and may lead to larger price movements when demand changes.
Free float is important when assessing how easy it may be to buy or sell a share.
How it is calculated
Free Float % = Publicly Tradable Shares ÷ Total Shares Outstanding × 100
How to read it
A higher Free Float % generally means more shares are available to public investors. A lower Free Float % may indicate that a large portion of shares is held by long-term or restricted holders.
Investors should review free float together with volume, traded value, and the number of trades.