free float

Free float refers to the number of a company's shares available for trading by the public in the stock market, excluding shares held by insiders, governments, or large strategic investors. It indicates how much of the company's stock is accessible for buying and selling, reflecting market liquidity. A higher free float generally means the stock is more liquid and easier to trade, while a lower free float can lead to more price volatility. Essentially, free float helps investors understand the ease with which they can trade a company's shares in the open market.