Knowledge BaseMarket & trading › Free Float
Market & trading

Free Float

The portion of a company's shares that is freely available for public trading, excluding locked-up or restricted holdings.

Part of the Market & Trading Basics course · Lesson 4 of 5
Formula
Shares Outstanding − Restricted / Closely-Held Shares

What it is

Free float (or public float) is the number of shares actually available to ordinary investors in the market. It excludes shares held by insiders, founders, governments, and other long-term holders that are restricted or unlikely to trade. It is the slice of shares outstanding that genuinely changes hands.

Why it matters

A small free float means fewer shares trade, which can mean lower liquidity and sharper price swings on normal-sized orders. Free float also drives index weightings in float-adjusted indexes, and a low float relative to short interest can amplify price moves. The pitfall is assuming all outstanding shares are tradable when a large block is locked up.

How it's calculated

Subtract closely held and restricted shares (insiders, control blocks, locked-up holdings) from total shares outstanding.

How Quintarthai uses it

Insider and institutional holdings that affect float can be reviewed via the Insider tracker and 13F flow, with float-related metrics available across the company pages; start on a stock's deep-analysis page.

Cross-border note. Insider and control-block holdings are disclosed through SEDI in Canada and SEC Form 4 in the US, so the data sources used to estimate restricted shares differ by listing.

FAQ

How is free float different from shares outstanding?
Shares outstanding is every share issued, while free float excludes the shares held by insiders and other long-term holders that aren't readily traded.
Why does a low float matter for volatility?
With fewer tradable shares, even modest buying or selling can move the price sharply, making low-float stocks more volatile.
Related terms
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