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What is float, and how much do I need?
Float is the part of a company's shares that are unrestricted and held outside the founders, officers and other insiders. Aim for at least 10% of your shares in the hands of people in your personal and professional network and others. OTCQB also requires an unrestricted public float of at least 10% of the shares outstanding.
Joel Arberman, Meraki Partners · Reviewed October 2026. Based on 17 companies taken public since 1999: 11 by direct listing, 4 by reverse merger and 2 by IPO.
What is the difference between float and shares outstanding?
Shares outstanding counts every share the company has issued. Float leaves out shares held by insiders and shares that are still restricted. A company with 10 million shares outstanding and 8 million held by the founders has a float of at most 2 million.
Where does the float come from in a direct listing?
From the private placement before the listing. The shares sold to about 50 or more investors are registered with the SEC in the registration statement, so they can trade once the stock is quoted. See raising before you go public.
Does a bigger float mean more trading?
Not by itself. Trading comes from interest in the company, and interest comes from results and a clear story. A float in the hands of long-term investors who believe in the plan is worth more than a large float held by people waiting to sell.
Can the float be too small?
Yes. Below 10% the company doesn't meet the OTCQB standard, and a very thin float makes the price easy to move with small trades. Later, an uplisting to Nasdaq has its own float and holder tests. See uplisting to Nasdaq.
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