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 does a low floating stock to outstanding shares percentage mean?

If a company’s floating stock to outstanding shares percentage is low, it means that the company has a lot of closely-held shares. Large lot trades by those investors could significantly affect the stock’s price and the stock’s volatility.

How does a stock split affect a company's floating shares?

Quick tip: Stock splits can have a big effect on a company's floating shares. If there's a stock split of 2-for-1, that means each share will "split" into two, increasing the number of floating stock. On the flip side, if there's a reverse stock split where two shares become one, that will decrease the number of floating stocks.

How do you calculate floating stock?

To calculate a company's floating stock, subtract its restricted stock and closely held shares from its total number of outstanding shares. Floating stock will change over time as new shares may be issued, shares may be bought back, or insiders or major shareholders may buy or sell the stock.