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Free Float Shares

Discussion in 'Fundamental Analysis' started by raj_samant2002, Jan 8, 2013.

  1. raj_samant2002

    raj_samant2002 New Member

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    Hi Gents

    Can anybody explain what is free floating share and how to calculate them . Please tell where we can find it for Indian market on internet.

    Regards

    Rajesh Samant
     
  2. shabbir

    shabbir Administrator Staff Member

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    Free float shares are those shares of a company that are held by investors who are likely to trade. So if a company has 100 shares and out of which 20% is available for trading then 20 shares are in free float.

    It could happen that out of this 20 some large investors could have invested in 5 and are not ready to trade then free float would become 15%.

    Not sure where you can find free float value of a particular share but I think volume is far better indicator than free float because it gives you average traded volume in a stock.
     
  3. raj_samant2002

    raj_samant2002 New Member

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    Thanks for the expaination.

    Is it possible to find it from shareholding patterns?

    Regards

    Rajesh Samant
     
  4. shabbir

    shabbir Administrator Staff Member

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    Yes that is the only way to find it.