Floating shares

Floating Supply

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 floating supply greatly affects a stock's volatility. If it 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 floating supply tends to have less volatility because large orders do not affect the supply as much. It is also called a float. See also: Technical condition of a market.

Floating shares.

Floating shares are shares of a public corporation that are available for trading in a stock market.

The number of floating shares may be smaller than the company's outstanding shares if founding partners, other groups with a controlling interest, or the company's pension fund, employee stock ownership plan (ESOP), or similar programs hold shares in their portfolios that they aren't interested in selling.

Some equity index providers, including Standard & Poor's, use floating shares rather than outstanding shares in calculating their market-capitalization weighted indexes on the grounds that a float-adjusted index is a more accurate reflection of market value.

References in periodicals archive ?
The move by the Chinese consortium came after the Bangladesh government invited bids for partners by floating shares in the exchange.
The company, according to highly placed sources at the Capital Market Authority, has sought approval for floating shares on MSM.
The state has also recently moved to make floating shares more lucrative to local family-owned conglomerates.
According to the company, it will use the fund to support interested investors in generating greater liquidity of its stock in the market, buying stocks when needed, selling stock when there is excess of demand as well as to increase the turnover of the floating shares.
The aim of this fund is to increase the turnover of the floating shares and it is not intended to decrease or increase the current number of shares in the market.
based carmaker, Italy's Fiat SpA (BIT:F), reportedly wants to make Chrysler public once again by floating shares, either separately from Fiat or as a combined company.
33 billion) each and SinoPac NT$30 billion (US$1 billion), via floating shares through GDR or ECB or by cash capital increase.
Meanwhile, the Managing Director for Finance of Merukh Enterprise Janny Utami said the company will launch IPO floating shares in the Singapore and Australia's Stock Exchanges.
Facebook, which has more than half a billion users worldwide, has resisted floating shares since it was founded nearly seven years ago, given the public scrutiny which comes with such a move.
Committee earned millions of dollars by floating shares in the market while not a penny was given to Balochistan out of its 25 percent share.
He said that a building was bought for establishing a joint bank with the Syrian private sector, adding "now we are taking the final measures to start the process of floating shares in the Syrian market within two months maximum as we can say that the bank will be established in mid-2011.
Announcing the outcome of its internal investigations, the railway operator said the false registration of stockholders dates back to 1973, and it was apparently aimed at clearing the Tokyo Stock Exchange's listing requirements for First Section issues on the minimum amount of floating shares and their holders.