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Free float market cap

Free float market cap

The free float market cap of a company is the total value of all shares available for public trading. It excludes shares held by insiders, controlling shareholders, or governments.

For example, assume a company has 1 million shares outstanding with 200,000 locked up by insiders or governments. If shares trade for $100 the free float market cap is (1M-200,000)*$100 = 800,000*$100 = $80M.

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