Float – Total Number of Shares Traded Publicly

Float in Stocks

Float is the total number of shares available for a publicly traded company.  The float is equal to the total number of restricted shares minus the number of outstanding shares.

Why is Float Important

Float by itself does not provide a lot of insight into a company.  The real value in the float number comes into play when calculating other market sentiment numbers.  For example, the float is used to calculate the days to cover formula, which is used to gauge the bearish tone of a stock.

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Float Equation

# of Outstanding Shares - # Restricted Shares = Total Shares in Float

For example, if a stock has 50 million outstanding shares and 25 million are restricted shares, there leaves 25 million stocks to trade in float.

Al Hill Administrator
Co-Founder Tradingsim
Al Hill is one of the co-founders of Tradingsim. He has over 18 years of day trading experience in both the U.S. and Nikkei markets. On a daily basis Al applies his deep skills in systems integration and design strategy to develop features to help retail traders become profitable. When Al is not working on Tradingsim, he can be found spending time with family and friends.
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