Collection float

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Collection float

The period between the time is a check is deposited in an account and the time funds are made available.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Collection Float

1. Synonymous with shares outstanding. A collection float refers to the number of shares an issuing entity has not repurchased and that are available for trade by the general public. Sometimes it is simply known as a float.

2. A deposit into a bank account that has not yet cleared. For example, one may deposit a check for $1,000 from an out-of-state bank. The funds may be posted to the account immediately, but they will not become available to the account holder until the issuing bank honors the check and transfers the funds to the receiving bank. This process can take as long as five business days. See also: Check hold.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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