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Investopedia explains 'Average Daily Float'
The banking term for float is most commonly applied to banks, although it can also refer to large corporations who have both checks deposited and paid checks outstanding.
As a trading term, the average daily float is a measure of the liquid market for a company's stock. If a company is closely held and only a small portion of the stock is trading in the public markets, it will affect the bid/ask spread and a number of other aspects of how the stock is valued.
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