Free-Float Methodology

Business, Legal & Accounting Glossary

Definition: Free-Float Methodology


Free-Float Methodology


Full Definition of Free-Float Methodology


A method of calculating the market capitalization of companies within an index. Instead of including all outstanding shares in the calculation, closely held shares in the hands of promoters and governments are excluded. Total outstanding shares (minus locked in shares), multiplied by the price per share reveals the market capitalization of freely trading shares.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/free-float-methodology/
Modern Language Association (MLA):
Free-Float Methodology. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/free-float-methodology/.
Chicago Manual of Style (CMS):
Free-Float Methodology. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/free-float-methodology/ (accessed: April 23, 2024).
American Psychological Association (APA):
Free-Float Methodology. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/free-float-methodology/

Definition Sources


Definitions for Free-Float Methodology are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.