1/27/2024 0 Comments Shares outstanding vs float![]() ![]() Moreover, once the company is listed, the business must be independent from any shareholder with controlling interest (anyone owning more than 30% of the company shares), and after the company is listed, at least 25% of its shares must be in the hands of the general public, that is public float, and the company must have a total market capitalization of not less than £700,000. Also, the company should have published or filed audit accounts for at least a three-year period, have trading and revenue earning records for at least three years, its higher management and directors must be competent enough to run a business at that scale, and the company must show that it has a working capital for at least 12 months. be a public limited company under UK law. There are certain regulations to offer public floats, though these regulations might differ from region to region.įor instance, to offer public floats in the United Kingdom, a company must be incorporated, i.e. In general, the large holdings of founding shareholders, corporate cross-holdings, and government holdings in partially privatized companies are excluded when calculating the size of a public float. Stocks with smaller floats tend to be more volatile than those with larger floats. For example, a company may have 10 million outstanding shares, with 3 million of them in a locked-in position this company's float would be 7 million (multiplied by the share price). The float is calculated by subtracting the locked-in shares from outstanding shares.
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