What Is Float? Low-Float Stocks Explained

A stock's float (or free float) is the number of its shares that are available for the public to buy and sell. It leaves out shares that can't easily be traded, such as those held by insiders, founders and controlling shareholders, or shares still under lock-up.

Float vs. shares outstanding

Shares outstanding is every share the company has issued. Float is the part of that which actually trades. A company with 50 million shares outstanding, where insiders hold 35 million, has a float of about 15 million.

What counts as "low float"?

There's no official cut-off. Many day traders call a float under 20 million shares low, and under 10 million very low. Nexus Screener's Supernova scan uses under 20 million.

Why low-float stocks move so sharply

When few shares are available, a burst of buying (often after news) can push the price up quickly, because there aren't many sellers at each price. The same works in reverse: low-float stocks can fall just as fast, and spreads between the bid and ask are often wide. They are among the most volatile stocks in the market.

Float rotation

Float rotation compares today's volume with the float. If a stock with a 5 million share float trades 10 million shares, its float has rotated 2×: on average, every available share has changed hands twice. High rotation shows intense interest, but it doesn't tell you which way the price will go next.

How Nexus Screener shows it

• Float is shown on every stock card and in the stock's profile.
• A Float rotated tag appears when today's volume passes the float.
• You can filter scans by maximum float and minimum float rotation.

Risks to keep in mind

Float figures come from company filings and can lag behind new share sales. Low-float stocks often issue new shares (dilution), which can push the price down. Nexus flags recent registration filings with a Dilution risk tag.