RE: Free float meaning?14 Oct 2020 11:56
Hard to tell what the exact free float is as lots of shares are being traded and going into longer term holder hands. This effectively reduces the free float. There is a fixed amount quoted at 3.75bn. However if those are in the hands of holders who have no plan to sell for years, the float is effectively smaller.
As the float gets smaller, or shares get into stickier hands, it puts pressure on the price to move up as demand comes with news and progress. Market makers can see stop losses though, so a level of volatility is always at play when the need for shares arises due to the float getting tighter. Long term, its a good thing as demand for them will push the price up. In the short term, it can cause larger volatility.