The "free float" of a listed and publicly traded company is the proportion of its stocks that is not directly or indirectly held by its major owners (entities holding more than 5% of all stocks in issue), executive officials, subsidiaries of the company, or the Government.

From a practical viewpoint, the higher the company’s free float, the larger the trading volumes and the higher the liquidity of its stocks. Therefore, the level of a company’s free float is an important factor for both private and institutional investors in making investment decisions.

Updated as of: 12.05.2017