FTB-C000144 / Formula component

Free-Float Market Capitalization

Free-float market capitalization adjusts full market capitalization by the methodology's eligible investable share fraction.

Also known asfloat-adjusted market capinvestable market capitalization

Intermediate Formula defined 8 linked topicsPublished

Definitions

In plain terms

If only 60% of a company's shares are treated as freely available, the float-adjusted capitalization uses that fraction rather than all shares.

Technical

The measure multiplies eligible price, shares, and free-float or investability factor, with explicit rounding, bands, foreign limits, effective dates, and methodology version.

Scope

Free float is provider- and methodology-defined and is not simply shares not held by insiders in every market.

Formula

FFMC = P * Q * F
LaTeX: FFMC=PQF
SymbolMeaningUnit
Peligible price per sharecurrency per share
Qdeclared sharesshares
Ffree-float or investability factorratio

Output unit: currency

Examples

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

Common misconceptions

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

Concept relationships

Prerequisites

Contrasts with

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 Primary
  • D03-F02-A05 Important
  • D03-F02-A07 Important
  • D03-F02-A08 Important
  • D03-F06-A03 Important

Evidence and governance

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

    Supports: preferred label, short definition, technical definition, formula

    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.