Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Free float refers to the portion of a company’s shares that are freely available for trading, excluding promoter, government, and strategic locked-in holdings.
The chunk of a company’s shares actually available to buy and sell in the market.
Indices like Nifty and Sensex use free-float market capitalisation (not total market cap) to weight constituent stocks, reducing distortion from large promoter holdings.
A company with 70% promoter holding has only 30% free float, which is what index weighting is based on.
The chunk of a company’s shares actually available to buy and sell in the market.
Free Float helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.