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Free float ratio

The free float ratio is the percentage of a company’s share capital that trades freely on the exchange. The free float ratio expresses the share of tradable shares, excluding those held by controlling and strategic shareholders, in the total share count.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Live example
  4. 4.Interpretation
  5. 5.Pitfalls
  6. 6.Frequently asked questions

Key points

  • It is based on Central Registry Agency (MKK) data and feeds index weight calculations.
  • A high free float means more liquidity and a larger index weight; institutions and funds favour such shares.
  • the free float ratio and actual circulation can differ, since part of the apparent float may be locked with long-term institutional holders.

Formula / calculation

Free float ratio = Free-float shares / Total shares × 100. Free-float market cap = Market capitalisation × Free float ratio. BIST indices weight constituents by free-float market cap.

Live example

free float ratio
49.18%
THYAO
Last price
290.75 TL
Daily change
0.00%
Market cap
TRY 401.2B

Interpretation

A high free float means more liquidity and a larger index weight; institutions and funds favour such shares. With a low free float, a handful of buyers or sellers can move the price sharply.

Pitfalls

the free float ratio and actual circulation can differ, since part of the apparent float may be locked with long-term institutional holders. Purchases by the controlling shareholder lower the ratio, and capital increases change it.

Pages where this term appears

Related terms

Frequently asked questions

The free float ratio is the percentage of a company’s share capital that trades freely on the exchange.

Free float ratio = Free-float shares / Total shares × 100. Free-float market cap = Market capitalisation × Free float ratio. BIST indices weight constituents by free-float market cap.

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