What is Float %?
Free Float % is the percentage of total shares that are freely available for public trading. It shows what portion of the company is actually liquid versus locked up by insiders.
Think of it like this
If a company is a hotel with 100 rooms, but the owner lives in 40 rooms permanently, only 60% of the hotel is available to guests (60% free float). Low free float % means concentrated insider control.
Formula
Free Float % = (Free Float / Total Shares Outstanding) × 100%- Free Float: Publicly tradable shares
- Total Shares: All shares outstanding
Why it matters
- Shows insider vs public ownership split
- Low % means concentrated insider control
- High insider ownership can signal confidence
- Affects trading dynamics and volatility
What's a good value?
< 25%
Very Low
Heavy insider control, can be illiquid
25-50%
Low
Significant insider ownership
50-80%
Moderate
Balanced ownership structure
> 80%
High
Widely distributed ownership
Real-world example
Snap IPO: ~10% float (founders kept 90% control) = illiquid, volatile. Mature S&P 500: typically 80-95% float = widely held. Facebook/Meta IPO: 15% float initially, gradually increased as lockups expired.
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