Float & Short Interest

What a stock’s float is, how short interest and days to cover work, real examples, and why heavily shorted stocks can make sudden, violent moves.

Shares outstanding versus float

Shares outstanding are all the shares a company has issued. The float is the portion available for the public to trade. It excludes shares held by insiders, founders and certain long-term holders who are restricted from selling or unlikely to sell. A small float means fewer shares are available, which can make the price move more sharply when demand changes.

Unlock all of Investing School

The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.