FTB-C000145 / Formula component

Free-Float Factor

A free-float factor is a methodology-defined fraction used to represent the portion of shares considered available to public investors.

Also known asinvestability weight factorfloat factor

Intermediate 9 linked topicsPublished

Definitions

In plain terms

The factor reduces full market capitalization when strategic, controlling, government, or otherwise restricted holdings are excluded by the methodology.

Technical

The factor requires provider rules, holder classifications, foreign ownership limits, bands and rounding, security scope, effective date, source, and review history.

Scope

It is not a universal observable fact and different index providers may assign different factors.

Examples

  • A governed index record identifies free-float factor with its applicable methodology version, effective time, source, and units.

Common misconceptions

  • Free-Float Factor does not have one universal implementation without the named index methodology, data cutoff, and governance context.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D03-F01-A02 Important
  • D03-F01-A05 Important
  • D03-F02-A03 Primary
  • D03-F02-A04 Important
  • D03-F02-A05 Important
  • D03-F02-A07 Important
  • D03-F02-A08 Important
  • D03-F06-A03 Primary
  • D03-F06-A06 Important

Evidence and governance

  1. MSCI Global Investable Market Indexes Methodology Library MSCI · first party methodology

    Supports: preferred label, short definition, technical definition

    Limits: MSCI methodology and production data are provider-specific and branded data or calculated values may require licenses.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.