Float (Stock Float)
The number of shares of a company's stock that are freely available for public trading, excluding shares held by insiders, executives, and restricted shareholders.
What is Float?
A stock's float represents the total shares outstanding minus shares that are not freely tradeable — including those held by company insiders (executives, directors, and employees subject to lock-up agreements), major long-term institutional holders classified as restricted, and treasury shares. Float determines how many shares are actually available to respond to market supply and demand. A low-float stock — one with a small number of freely traded shares — tends to exhibit higher price volatility because even modest buying or selling pressure can move the price significantly. Float is especially relevant for short sellers, who borrow and sell shares: short interest as a percentage of float indicates how crowded a short position is and is used to gauge short squeeze risk.
Example
Following Meta Platforms' IPO in 2012, Mark Zuckerberg and other insiders held large blocks of shares subject to lock-up agreements preventing their sale for 180 days. During that period, the public float was a fraction of total shares outstanding, meaning the tradeable market was thin and stock price movements were amplified. When the lock-up expired and insider shares became eligible for sale, the increased float provided more price stability over time.
Source: Investopedia — Float