Free Float

الأسهم الحرة

Free float is the portion of a company’s shares available for trading by the public, excluding stakes held by founders, governments, strategic investors, and other long-term holders. A larger free float generally supports higher liquidity in the stock. EGX indices, including the EGX 30, weight companies by their free-float-adjusted market capitalization.

Example

A company with one billion shares where founders and the state hold 700 million has a free float of 300 million — only those are realistically available to trade.

Why it matters

Free float determines how much of a company the market can actually buy and sell, which drives its liquidity and its weight in a float-adjusted index such as the EGX 30.

A common mistake

Using total market capitalisation to judge tradability. A large company with a small float can be harder to build or exit a position in than a smaller company that is mostly public.

Related terms

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