Average Daily Float


DEFINITION of 'Average Daily Float'

1. The dollar amount of checks or other negotiable instruments that are in the process of collection over a certain period, divided by the number of days in the period; or

2. The number of company shares that are actually outstanding and available for trading on the public market on an average daily basis.

BREAKING DOWN '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.

  1. Float

    Money in the banking system that is briefly counted twice due ...
  2. Average Collected Balance

    The average balance of collected funds (less any uncleared or ...
  3. Average Balance

    The balance on a loan or depositary account. A simple average ...
  4. Available Balance

    Balances in checking or on-demand accounts where there is a delay ...
  5. Float Time

    The amount of time between when an individual writes and submits ...
  6. Available Funds

    Funds that are available to an account holder for withdrawal ...
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