The percentage of shares outstanding that are not held by individuals and corporations closely associated with the company. It is calculated by subtracting closely held shares from shares outstanding.
Origin
This figure is calculated in-house.
Benefit
Investors often use float as an indicator of liquidity. The higher a stock’s float, the more freely a company’s shares trade. Conversely, some investors prefer companies with low floats because they imply high ownership by company insiders. (Estimated float is 100% - % Closely Held shares, or those shares held by persons closely connected to the company.) Such high insider ownership can be a sign that the interests of company management are closely aligned with those of shareholders.