TechCrunch  Nov 25  Comment 
 A company called eleVR, which does research in virtual reality and isn’t a gaming company at all, just shared a video for a virtual reality game they’re working on called Float. It’s a puzzle game and platform where you can visit floating...
WA Business News  Nov 20  Comment 
Live cattle exporter Wellard is set to list at $1.39 per share, launching a prospectus to raise close to $300 million to give the business a market capitalisation of almost $560 million.
WA Business News  Nov 16  Comment 
Whether or not the Wellard IPO is successful, it demonstrates there is more to WA than just resources.
The Hindu Business Line  Nov 14  Comment 
National Securities Depository Ltd (NSDL) will float its payments bank in less than a year, according to MD & CEO GV Nageswara Rao. The Reserve Bank of India had granted 'in-principle...
The Australian  Nov 12  Comment 
Seek is set to bag a $330 million payday as it moves to sell all of its holding in IDP Education.
The Economic Times  Nov 11  Comment 
Arijit Basu, MD and CEO at SBI Life, said the two promoters are currently discussing how much the foreign partner will increase its stake.
guardian.co.uk  Nov 9  Comment 
Company also behind Match and OkCupid looking to buck trend of recent poor IPOs in wake of Chinese stock market troubles The New York-based owner of dating brands including Tinder, Match and OkCupid is to press ahead with a flotation valuing the...
guardian.co.uk  Nov 9  Comment 
Budget fitness centre’s IPO will make £3m for its founder John Treharne, after starting with a single London site seven year ago A budget gym business that started with a single site in west London seven years ago is to float on the stock...
Mondo Visione  Nov 6  Comment 
Deutsche Börse AG has announced an unscheduled adjustment to the free float of alstria office REIT AG in SDAX. The company’s free float changed by more than 10 percentage points, which was caused by a capital increase due to the acquisition of...
Reuters  Nov 6  Comment 
China National Bluestar, a subsidiary of ChemChina, has started preparing for a stock market listing in Norway of its silicon business Elkem as it seeks to free cash for...


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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