• The free-float methodology is a method of calculating the market capitalization of the companies underlying the stock market index.

  • Using this methodology, the market capitalization of a company is calculated by multiplying the share price by the number of shares available on the market.
  • The free-float method can be contrasted with the full market capitalization method, which considers both active and inactive stocks when determining market capitalization.
  • The free float method excludes locked shares, such as those held by insiders, promoters and governments.