Float - This refers to the number of shares of a company's common stock that are free trading and in the public float. It is almost always a number less than the number of shares a company has issued and outstanding.  The reason the number is almost always less is because a company usually has shares of common stock that are restricted and are not yet free trading.

         The reason why it is important to know the number of shares of common stock a company has in its float is because it is a good indication of the dilution the company has in its share structure.  The price of its common stock is based on a number of factors such as supply, demand, its p/e ratio, gross earnings, net income and dilution caused by further stock issuances.

        Investors carefully track the public float of a company's common stock for the purpose of determining value and whether or not they feel the stock is undervalued and therefor a good investment.