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Glossary · PSX term

Free-float percentage.

Free-float percentage is the share of a company's stock available for public trading.

Definition

It equals free-float shares divided by total shares, and a higher percentage usually means better liquidity and a larger index weight. Low free float can make a stock more volatile and easier to move.

Worked example

If 300 million of a company's 1 billion shares trade freely, its free-float percentage is 30%.

Related on PSX Clarity

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Free-float market capitalisation
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Index weight
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