What Is Float?
The number of a company's shares actually available for public trading.
The Full Definition
A company's float is the number of shares available for trading by the general public, excluding shares held by insiders, founders, or governments that are restricted or not actively traded. A low float — relative to total shares outstanding — means fewer shares are changing hands, which can make a stock more volatile and more susceptible to sharp price swings on relatively small trading volume. Float matters for liquidity risk: a stock can have a huge market cap on paper while having a tiny, illiquid float.
Real-World Example
A company might have 100 million total shares outstanding, but if founders and institutions hold 80 million of them long-term, the float is only 20 million shares — meaning relatively modest buying or selling pressure can move the price dramatically.