Free Float

Posted in Finance, Accounting and Economics Terms, Total Reads: 1546

Definition: Free Float

Free float are those shares of the company which are available in the open market to be traded/ invested by the public. The shares of the company may be held by different types of parties like the government, FDI, founders and directors of the company.

Such shares are not available to be traded in an open market. A company is required to specify its free float shares to the Sensex.

The no of free float shares times the share price is the free float market capitalization of the company. Free Float introduces more rationality in judging the market capitalization of the company.

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