Due to this subjective nature, free float estimates can and do vary among data service providers, sometimes significantly.Īt ORTEX, we utilize a wide variety of data providers for many of the metrics available on our platform. Making matters slightly more complicated, there is no standardized definition for some of these categories. When you exclude these categories of investors, you arrive at free float. Early investors such as venture capitalists may also sometimes be considered strategic investors. Many large institutions may also be long-term holders, particularly funds that hold over 5% of shares outstanding. For example, insiders and executives often hold stock for long periods of time with no intention of trading. However, some of those shares are restricted from being freely traded, and therefore do not contribute to a company’s overall liquidity as it relates to daily trading activity. ![]() Most investors are likely familiar with shares outstanding, which is the total number of shares that a company has issued and exist currently. ![]() ![]() Among the most important is free float, sometimes called public float, which represents a stock’s overall pool of publicly traded shares. There are many important liquidity metrics that investors watch in order to better understand market conditions.
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