Glossary
Free float
M0.02Also called public float, floating stock.
The proportion of shares available for public trading, excluding promoter, government and other locked-in holdings.
A company with 74.2% promoter holding has a 25.8% free float.
The float determines how the shares behave. A small float means a thin order book, larger price moves on modest volume, and a valuation that can drift far from fundamentals in either direction for long periods.
It also determines index weight, since major Indian indices weight by free-float market capitalisation rather than total.
Check the float before trusting a price signal.