Free float (Streubesitz)
The share of a company's stock that is freely traded on the exchange rather than held by long-term major owners.
In short
As of 8 October 2026Free float (German: Streubesitz) is the share of a company's stock that trades freely on the exchange and is not held long term by major owners such as founding families or the state. Indices like the DAX weight companies by the market value of their free float. A small free float can also make prices swing more sharply.
Free float covers all shares not held long term by major shareholders. Founding families, the state or strategic investors with large stakes are usually excluded.
Free float matters because indices such as the DAX or the MDAX weight companies by the market value of their freely tradable shares. A company with a large family stake therefore counts for less in the index than its full market capitalization suggests. A small free float can also lead to sharper price swings.
Example: a company is worth 20 billion euros and a family holds 60 % of the shares. The free float is 40 %, so only 8 billion euros count for index weighting. How indices work is explained in ETF or single stock.
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.