Floating shares refer to the number of shares a company can trade on the open market.
To calculate a company’s current shares, subtract its restricted and privately held shares from its total outstanding shares.
The number of shares outstanding will change over time as new shares may be issued, shares may be bought back, or insiders or major shareholders may buy or sell shares.
Stocks with a low turnover tend to have higher spreads and higher volatility than stocks with a comparable high turnover.
It can be difficult for investors to enter or exit positions in low-floating stocks.