Mondo Visione  Apr 8  Comment 
The Saudi Stock Exchange (Tadawul) announces that the number of free float shares for all companies have been updated for the 1st quarter 2018 (05/04/2018). The updated number of free float shares is used in the calculation of Tadawul All Share...
Channel News Asia  Mar 29  Comment 
AMC Entertainment Holdings is working with Citi on an initial public offering (IPO) of Britain's Odeon cinemas group, three sources familiar with the matter said.
Benzinga  Feb 21  Comment 
Short percent of float is a metric often cited by traders when discussing heavily shorted stocks that could be vulnerable to short squeezes. When it comes to using institutional short selling to make predictions about potential fundamental changes...
Financial Times  Feb 1  Comment 
Dutch company already has contracts with Uber, Netflix and Facebook
The Hindu Business Line  Jan 19  Comment 
Union Minister of Road Transport, Highways and Shipping Nitin Gadkari on Friday said he will float bonds to raise money from retail investors to support government promoted infrastructure projects if...
The Hindu Business Line  Jan 17  Comment 
Sidelined AIADMK leader TTV Dhinakaran today said there was no immediate necessity for him to float a new political party and said he would move the court seeking permission to function as AIADMK (A...
Financial Times  Jan 17  Comment 
An expected IPO boom bodes well for brokerage companies such as Citic Securities
The Economic Times  Jan 16  Comment 
During initial share sale, as many as 307 shareholders will sell 63,31,674 shares of the company


The float refers to profits earned by a financial institution on assets that do not belong to that institution, but are held in custody for a client or other purpose. The float is an important source of profitability in a number of industries, such as:

  • Retail banking: In the case of retail banking, customers' checking accounts often earn little or no interest. However, the bank can collectively invest the money its customers have deposited in higher-yielding investments such as mortgages. The bank then earns the difference between the interest paid on the mortgage and the interest paid to customers with deposits in checking accounts.
  • Insurance: The float refers to the time period between when premiums are collected and claims paid out. During this time, insurers invest the premiums and generate returns. Legendary investor Warren Buffett of Berkshire Hathaway (BRK) was originally attracted to the insurance business since he could use low-cost float to earn higher returns on his successful investments.
  • Retail Brokerage: In recent years, stock brokerage firms (particularly E*TRADE Financial (ETFC)) have made money by investing cash left in client trading accounts and earning a float on these assets.

===Ways that financial institutions earn , interest rates rise when loans are longer-term, to compensate the lender for tying up money and making it inaccessible (this difference in interest rates is known as the Yield Curve. For example, a savings account that allows you to withdraw money at any time would pay a small interest rate, but a CD that leaves you unable to access your money for a period of months or years would pay a higher rate. While an individual bank customer might add or withdraw money unpredictably, the bank as a whole can generally count on having stable deposits across all its customers. This allows the bank to pay short-term interest on checking accounts, but then earn higher, long-term interest on these deposits by lending it out for long-term loans (such as mortgages, which typically last 30 years).

  • Assuming risk. By pursuing riskier investments, a financial institution can earn greater returns on assets on deposit.
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