Float (free float)

Example

Say a company has 80 million shares outstanding. Its founders hold 30 million, a parent company holds 18 million and another 12 million are still under lock-up, so the float is 20 million shares, just 25% of the total. With so few shares able to trade, a burst of buying can move the price far more than the company’s size would suggest.

Hypothetical numbers, for illustration only.