Markets
Free float is the portion of a company's shares that can be traded freely on the stock exchange and is not permanently held by major shareholders, founders, or the state.
Free float refers to the portion of a company's shares that is traded freely on the market, meaning it is not held by major shareholders, founders, or the government.
A high free float (for example 80–100 %) generally means better tradability and tighter spreads. A low free float can lead to higher volatility and lower liquidity.
Many indices (for example MSCI, FTSE) weight companies by free-float market capitalisation rather than by total market capitalisation.
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