Float refers to the total number of a companyís shares that are available for public trading in the stock market. It represents the portion of shares that are not held by insiders, promoters, or institutions with long-term ownership but are instead accessible to retail and institutional investors. The float is a key measure of a companyís stock liquidity ó the ease with which shares can be bought or sold without significantly impacting the price.

The float is calculated by subtracting restricted shares (held by company executives, founders, or large shareholders) from the total outstanding shares. For example, if a company has 10 million shares outstanding, and insiders hold 4 million restricted shares, the public float would be 6 million shares. This number provides insight into how actively a stock can be traded on the open market.

Companies with a high float typically experience greater liquidity, meaning their share prices are less volatile because more shares are available for trading. Conversely, a low float stock tends to have higher volatility, as even small trading volumes can cause significant price movements. Traders often monitor float levels closely, especially in short-term or speculative trading strategies.

Itís important to distinguish between outstanding shares (total shares issued) and floating shares (tradable shares). While outstanding shares determine market capitalization, float helps investors assess how freely the stock moves in the market.

From an investment perspective, understanding the float helps gauge market behavior, potential price volatility, and investor sentiment. In India, data related to shareholding patterns and float is disclosed in company filings and monitored under SEBI regulations to maintain transparency in trading activities.

In essence, the float is a vital indicator of a stockís tradability and market participation, influencing both liquidity and price dynamics in equity markets.