Free Float

Definition:

In the United States, a method by which the Market Capitalization of a company is calculated. Generally, the Free Float is calculated by taking the share price and multiplying it by the number of shares readily available in the market. Rather than including all shares outstanding, the Free Float excludes locked-in shares such as those held by officers, controlling-interest investors, promoters and governments. The Free Float method of calculating Market Capitalization is seen as being more accurate than other methods since it provides a more accurate reflection of market movements.

In the United Kingdom, Free Float refers to the proportion of an issuer’s listed share capital that is held by non-insiders.

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