Float is the number of a stock’s outstanding shares that are not held by individuals and corporations closely associated with the company. It can give investors an idea of how volatile that stock is likely to be.
Float
What is float?
For example, a company with a small float (around 10%–20%) doesn’t have a big supply of shares available for the public to buy. If demand outstrips this limited supply, the price can shoot up quickly; if that demand dries up, the price can plunge just as fast.