What is a float stock?

Floating stock is the number of public shares a company has available for trading on the open market. It's not the total shares a company offers, as it excludes closely held and restricted stocks. A stock's float just tells you how many shares can be bought or sold at the present time.

What is the difference between shares outstanding and float?

Shares outstanding are the total shares of stock a company has. It includes the restricted and closely held shares, as well as the ones available for trade, whereas float refers only to the number of shares available for trading.

What does low float mean?

Low float: When a small percentage of shares are available for public trade, it's considered a low float. This may be the result of having a large number of closely held or restricted shares or having few investors. The supply of shares is low, which can make them difficult to acquire and discourage investment.

What is a public float?

The public float is traded by institutions and retail traders like you and me. Stock float is the number of shares left for everyday traders like you and me and investors in the public market. It’s our piece of the company’s pie. Why Is Stock Float Important? Stock float affects a company’s share price on a daily basis.