Float is the subset of outstanding shares that actually trades. Outstanding shares means all issued shares. Float removes insider holdings, locked-up stock, and other shares that are not freely trading.
Why it matters
This distinction changes how investors interpret short interest, volume spikes, and squeeze setups. A stock with modest absolute volume can still have extreme turnover if float is tiny.
Watch for: - recent issuances or cancellations that alter float, - insider ownership changes that shrink float without changing total outstanding shares, - and high borrow fees caused by tight float rather than deep bearish conviction.
Where to apply it
Use the Short-Interest Change Playbook, the Shares Outstanding Changes Table Guide, and the Interesting Volume Days Table Guide when you want to apply the distinction in live screens.