← Glossary

Free Float

The portion of a company's shares that are actually available for public trading, excluding shares locked in by sponsors, government holdings, or other strategic investors.

Many PSX-listed companies have a large chunk of shares held long-term by founding sponsor families, the government, or associated companies — those shares technically exist but rarely trade. Free float strips them out to show what's genuinely tradable.

This matters because PSX's major indices (KSE-100, KSE-30, KMI-30) are free-float-weighted: a company with a large total market cap but a small free float carries less weight in the index than its headline market cap would suggest.

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