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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.


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.


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.


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


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.


(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.


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 periodicals archive ?
Manufacturing Technology of Float Switch: This chapter is mainly divided into three major parts as Development, Analysis and Trends of Float Switch Manufacturing Technology.
The city's 2006 entry, ``A Magical Place to Call Home,'' won the Princess Trophy, which goes to the most beautiful float 35 feet in length or less.
This year's combination of unique, creative float sponsors combined with Fiesta Parade Floats' ability to continually push the bounds of float design, engineering and floral presentation resulted in a spectacular line-up of float entries that were recognized by parade judges and captured the attention of millions of viewers as they made their way down Colorado Blvd.
In addition to generating some pride for Palmdale residents, officials said the float generated a great deal of publicity for the city.
Get an inside look at some of the floats participating in the 120th Tournament of Roses([R]) Parade prior to flowering, before they adorn the streets of Pasadena, Calif.
When finished, the float will be 35 feet long and will measure 20 feet tall at the fairy's wingtips.
1 -- color) The city of Palmdale's float design for the Tournament of Roses parade in 2006 features a giant fairy with animated wings.
City officials view the float both in terms of community pride and as an economic development tool.
The city plans to encourage residents to assist with the decorating of the float, and will also begin looking for sponsorships.
The association builds its float in the rear parking lot of the Wells Fargo bank building at Fair Oaks Avenue and El Centro Street, where curious bank customers and Starbucks patrons often become volunteer float decorators.
First, when it wasn't good enough to simply decorate, the 23-year Rose Parade float veteran took welding classes with two friends in the early 1990s so they could build their own float - from the bottom up - for the city of Burbank.