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Float Shrink

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Dictionary Says

Definition of 'Float Shrink'

A strategy for reducing or 'shrinking' the number of a company's outstanding shares currently trading in the market. Float shrink can occur when a company buys back its own stocks or when demand for the position increases and drives down the available shares, which will in turn increase the stock's price.

Investopedia Says

Investopedia explains 'Float Shrink'

Float is the amount of outstanding shares a company has trading in the open market. Many exchange traded funds (ETFs) are float shrink funds; those that are require the fund manager to increase the number of shares of specific holdings through the fund and, therefore, the ETF shareholder's ownership stake in the assortment of underlying companies.

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