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Markets & Instruments

Free Float

Also called: float, public float, free float adjusted

Free float is the portion of a company's shares actually available to trade, excluding stakes held by founders, governments and strategic holders. Major indexes weight by free-float market cap rather than total market cap, because the locked-up shares can't be bought. A small float amplifies everything: the same buying pressure moves the price much further, which is the structural precondition for most short squeezes.

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