Float definition

Float is how many shares of a given company can be traded by the public. Float is not always the same as the number of shares outstanding. In some cases float is dramatically less than the number of shares outstanding. Price of a stock with a small float can move up or down significantly with relatively small buying or selling. Large funds will typically not invest in companies with small float because it is difficult to invest a large amount of capital (and subsequently it is difficult to sell lots of shares) into a stock with small float.

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