# Free Float

*Markets & Instruments — Finicade finance glossary*

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.

**Also known as:** float, public float, free float adjusted

**Related terms:** [Market Capitalization](https://finicade.com/glossary/market-capitalization), [Market Index](https://finicade.com/glossary/market-index), [Liquidity](https://finicade.com/glossary/liquidity), [Lock-Up Period](https://finicade.com/glossary/lock-up-period), [Short Squeeze](https://finicade.com/glossary/short-squeeze)

Source: https://finicade.com/glossary/free-float