Float
Definition
The number of shares available for public trading, excluding restricted shares, insider holdings, and closely held blocks.
Explanation
Float determines a stock's liquidity and volatility. Low-float stocks (under 10 million shares) can experience extreme price moves because small amounts of buying or selling have outsized price impact. Stocks with float below 20% of shares outstanding are considered 'low float.' Short interest as a percentage of float is a key metric — when short interest exceeds 20% of float, a short squeeze becomes more likely because shorts would need multiple days of volume to cover their positions.
How Stoquity Uses This
Stoquity incorporates float analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.