Float


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Float

Currency: Exchange rate policy that does not limit the range of the market rate.
Equities: Number of shares of a corporation that are outstanding and available for trading by the public, excluding insiders or restricted stock on a when-issued basis. A stock's volatility is inversely correlated to its float.

Float

1. The number of shares of a publicly-traded company available to trade. It is important to note that this may be different from the shares outstanding: some shareholders may buy and hold, reducing the size of the float. The size of a float greatly affects a stock's volatility. If a float is small, any number of activities could affect greatly its price, especially a single large order to buy or sell it. This would greatly alter the number of shares available to trade, creating too little or too much supply and therefore drive the price up or down. A large float tends to have less volatility because large orders do not affect the supply as much. It is also called a floating supply. See also: Technical condition of a market.

2. In foreign exchange, a currency that is not pegged to another currency's value.

float

1. Funds that are on deposit at two institutions at the same time because of inefficiencies in the collection system. This situation permits a person or firm to earn extra income because the two institutions are paying interest on the same funds. As an example, a person writes a check on a money market fund in order to make a deposit in a local financial institution. Until that check gets back to the bank on which it was written (a transit often entailing two or three days), the investor receives interest on his or her funds from both institutions. See also fail float.
2. The number of shares in public hands and available for trading. Institutional investors require that a security have a large float before they will take a position in it. The large float guards against a substantial price change in the security while the institution is buying. Also called floating supply.

float

To permit a country's currency to change freely in value against foreign currencies.

Float.

In investment terms, a float is the number of outstanding shares a corporation has available for trading.

If there is a small float, stock prices tend to be volatile, since one large trade could significantly affect the availability and therefore the price of these stocks. If there is a large float, stock prices tend to be more stable.

In banking, the float refers to the time lag between your depositing a check in the bank and the day the funds become available for use. For example, if you deposit a check on Monday, and you can withdraw the cash on Friday, the float is four days and works to the bank's advantage.

Float is also the period that elapses from the time you write a check until it clears your account, which can work to your advantage. However, as checks are increasingly cleared electronically at the point of deposit, this float is disappearing.

In a credit account, float is the amount of time between the date you charge a purchase and the date the payment is due. If you have paid your previous bill in full and on time, you don't owe a finance charge on the amount of the purchase during the float.

float

(1) The amount of movement in a variable-rate mortgage,as in “the loan can float 1 percent per year or a maximum of 5 percent in a lifetime.” (2) The period of time after a check is deposited but before the funds have been collected or credited.If a depositor receives credit immediately,even though it may take several days for the maker's bank to transfer funds to the depositor's bank,then the depositor takes advantage of the float because it has use of the money.If a depositor does not receive credit for several days, but the bank has already received its money from the maker's bank, then the bank takes advantage of the float.

Float

Allowing the interest rate and points to vary with changes in market conditions,as opposed to “locking” them.

Floating may be mandatory until the lender's lock requirements have been met. After that, the borrower may elect to lock the rate and points at any time but must do so a few days before the closing.

Allowing the rate to float exposes the borrower to market risk and also to the risk of being taken advantage of by the loan provider. See Locking the Loan/Choosing When to Lock.

References in classic literature ?
Whenever the Princess pricked the words upon the leaves she added a thought of her Fairy Godmother, and folding it close within, sent the leaf out on the breeze to float hither and thither and fall where it would.
But I could not help fancying, now, that it moaned of those who were gone; and instead of thinking that the sea might rise in the night and float the boat away, I thought of the sea that had risen, since I last heard those sounds, and drowned my happy home.
And, snatching it up, he again assailed the loosened pinnacle, which was of weight enough, if thrown down, not only to have destroyed the remnant of the drawbridge, which sheltered the two foremost assailants, but also to have sunk the rude float of planks over which they had crossed.
We will go aboard and float down to Lyvern, whence you can return to London.
Meanwhile the cradle continued to float peacefully along the canal till, on the outskirts of the royal gardens, it was suddenly perceived by the intendant, one of the highest and most respected officials in the kingdom.
THE rain trickled down his back, and for nearly an hour he stared at the float.
Banners yellow, glorious, golden, On its roof did float and flow; (This--all this--was in the olden Time long ago) And every gentle air that dallied, In that sweet day, Along the ramparts plumed and pallid, A winged odour went away.
And next he was entering Frank's restaurant in Montgomery Street, San Francisco; he had ordered a pan-stew and venison chops, of which he was immoderately fond, and as he sat waiting, Munroe, the good attendant, brought him a whisky punch; he saw the strawberries float on the delectable cup, he heard the ice chink about the straws.
My soul seemed to go out from my body and float about the air.
The narwhal seemed motionless; perhaps, tired with its day's work, it slept, letting itself float with the undulation of the waves.
What would these divinities think of India, anglicised as it is to-day, with steamers whistling and scudding along the Ganges, frightening the gulls which float upon its surface, the turtles swarming along its banks, and the faithful dwelling upon its borders?
The ever-new passions which consumed her gave to her life the appearance of those clouds which float in the heavens, reflecting sometimes azure, sometimes fire, sometimes the opaque blackness of the tempest, and which leave no traces upon the earth behind them but devastation and death.