The formula to calculate Free Float Shares is:
\[ \text{Free float} = \text{Outstanding shares} - \text{Restricted shares} - \text{Closely-held shares} \]
The formula to calculate Free Float Percentage is:
\[ \text{Free float percentage} = \frac{\text{Free float}}{\text{Outstanding shares}} \times 100 \]
Free float shares refer to the number of shares available for trading by the public, excluding restricted shares and closely-held shares. The free float percentage indicates the proportion of a company's shares that are available for trading in the public market.
Let's assume the following for Company Alpha:
To calculate the Free Float Shares:
\[ \text{Free float} = 10,000 - 2,000 - 1,000 = 7,000 \]
To calculate the Free Float Percentage:
\[ \text{Free float percentage} = \frac{7,000}{10,000} \times 100 = 70\% \]
Therefore, the Free Float Shares are 7,000, and the Free Float Percentage is 70%.
