Legal Definitions - float

Definition: Float refers to the delay between a transaction and the withdrawal of funds to cover the transaction. It can also refer to the sum of money represented by outstanding or uncollected checks. For example, if you deposit a check, it may take a few days for the funds to become available in your account. During this time, the check is said to be "in float."

Float can also refer to the amount of a corporation's shares that are available for trading on the securities market. For example, if a company has 1 million shares outstanding, but only 500,000 are available for trading, the float is 500,000.

Additionally, float can be used as a verb. To float a security means to issue it for sale on the market. For example, a company may float a new series of preferred shares to raise capital.