What is Float?

A float, in the context of a publicly traded company, refers to the number of shares available for trading on the open market. It is important for a number of reasons.

First, the float can affect the liquidity of a stock. A stock with a high float has many shares available for trading, which means that it is easier for investors to buy and sell shares without significantly affecting the stock's price. A stock with a low float, on the other hand, may be more difficult to trade due to a lack of available shares.

Second, the float can also impact the volatility of a stock. A stock with a high float may be less volatile because there are more shares available to absorb buying and selling pressure. A stock with a low float, on the other hand, may be more volatile because a small number of shares changing hands can have a significant impact on the stock's price.

Third, float also impact the stock's valuation. A stock with a low float may be more expensive due to the scarcity of available shares, while a stock with a high float may be less expensive due to the abundance of shares.

Finally, the float can also affect the way a stock is traded. For example, a stock with a low float may be less likely to be included in indexes or mutual funds because it is less liquid and more difficult to trade.

In conclusion, a float is an important aspect of a publicly traded company and can affect the liquidity, volatility, valuation, and trading of a stock. Therefore, investors should take into account the float when evaluating a stock investment opportunity.

Float	#
Micro Float	Under 3M
Low Float	3M to 10M
Medium Float	10M to 50M
Large Float	50M+