PDSnet Glossary

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Definition

<p style="text-align: justify;">The <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">free float</span> of a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">company</span>'s <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">shares</span> multiplied by their current <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">market price</span>. Also known as the free float market cap., or the investable <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">market capitalisation</span>. This is used in the construction of <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">JSE</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">indices</span>. The whole idea of free float is to focus on those shares that are available to be traded in the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">market</span>.</p>