Float

1. The total number of shares publicly owned and available for trading. The float is calculated by subtracting restricted shares from outstanding shares.

2. A float can also refer to a small portion of the money supply representing a balance that is simultaneously present in a buyers and a payers account. A float results from the delay occurring between the time that a cheque is written and the money actually being deducted from the writer's account. These balances are temporarily double counted as part of the overall money supply.




Taobiz explains Float
For example, a company may have 10 million outstanding shares, but only seven million are trading on the stock market. Therefore, this company's float would be seven million.
Stocks with smaller floats tend to be more volatile than those with larger floats.