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Floating Stock

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Dictionary Says

Definition of 'Floating Stock'

Shares of a company that are freely available for purchase by investors on the secondary market. The more shares of floating stock are available, the less volatile a company's stock price is likely to be, and vice versa.

Investopedia Says

Investopedia explains 'Floating Stock'

Floating shares are included in the calculation of a company's outstanding shares, along with restricted stock. Restricted stock is only available to company insiders, like employees and executives. It is not freely traded among the public and is subject to special Securities and Exchange Commission restrictions.

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