Float Time

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Dictionary Says

Definition of 'Float Time'

The amount of time between when an individual writes and submits a check as a payment and when the individual's bank receives the instruction to move funds from the account. Before the implementation of the Check Clearing for the 21st Century Act (Check 21), the average float time was two to four days, but now most checks are cleared within a day.
Investopedia Says

Investopedia explains 'Float Time'

Prior to Check 21, individuals would sometimes take advantage of long float times and send out checks despite not having enough money in their accounts to cover the value of the check. This can give creditors the impressions that payment was available despite the fact that the individual did not have the funds when he or she actually wrote the check.

Individuals who attempt to use a check's float time in the manner previously described should be aware that doing so will likely result in a number of bounced checks as float times have become dramatically shorter because transferring checks in electronic format has hastened the clearing process.
Search results for

'Float Time'

  • The Basics Of Outstanding Shares And The Float

    http://www.investopedia.com/articles/basics/03/030703.asp
    ... the financial ratios used in fundamental analysis include things like outstanding
    shares and the float. Let's go through these terms so that next time you come ...

  • Banking: Check-Writing 101 | Investopedia

    http://www.investopedia.com/university/banking/banking3.asp
    ... recipient. The best way to avoid any problems with float time is to not write
    a check unless you actually have the money in your account. ...

  • What exactly is a company's float?

    http://www.investopedia.com/ask/answers/04/091004.asp
    ... of TSJ are not allowed to trade these stocks for a certain period of time, they
    are considered to be restricted; therefore, the company's float would be 7 ...

  • Financing Basics For First-Time Homebuyers

    http://www.investopedia.com/articles/mortgages-real-estate/08/homebuyer-financing-option.asp
    ... Such loans can be very advantageous for first-time borrowers because only paying ...
    Interest rates typically float during the interest-only period and will often ...

  • 13 Pre-Issue Corporate Bond Questions For Businesses

    http://www.investopedia.com/articles/bonds/09/corporate-bonds.asp
    ... trade or creditor management, capital expenditure, recruitment, executive perks,
    asset disposals, and bank cash management such as float time, bank charges and ...

  • Got A Good Mortgage Rate? Lock It Up!

    http://www.investopedia.com/articles/pf/08/lock-mortgage-rate.asp
    ... Some lenders offer a mortgage rate lock float down, which enables borrowers to make
    a one-time election to exchange their current rate for a lower rate if ...

  • Buying Back At The Right Time

    http://stocks.investopedia.com/stock-analysis/2009/Buying-Back-At-The-Right-Time-APOL-TMO-DIS-PKW1109.aspx
    ... Buying Back At The Right Time. ... This causes the total float amount of shares
    to drop, and the value of each outstanding share to increase. ...

  • It's Time For Skechers To Shape Up

    http://stocks.investopedia.com/stock-analysis/2011/Its-Time-For-Skechers-To-Shape-Up-SKX-PG-GE-DECK-NKE0601.aspx
    ... Skechers, it's time to shape up. ... Approximately 16% of its float or 6.2 million shares
    are currently short and it's easy to see why. However, I'm no short. ...

  • Short Interest: What It Tells Us

    http://www.investopedia.com/articles/01/082201.asp
    ... all investors) aren't perfect and have been known to be wrong from time to time. ...
    more often in smaller cap stocks, which have a very small float (supply), but ...

  • Is Your Broker Acting In Your Best Interest?

    http://www.investopedia.com/articles/pf/06/dependablebroker.asp
    ... such as higher payouts, to their brokers to push these stocks or bonds to their
    clients over time. ... Lastly, be on the lookout for stocks with a low float. ...

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