What is the meaning of Float?

In investment terms, a' Float' is the number of outstanding shares a corporation has available for trading. If there is a small float, stock prices tend to be volatile, since one large trade could significantly affect the availability-and therefore the price-of these stocks. If there is a large float, stock prices tend to be more stable. In banking, the float is the time that elapses from the time you write a check until it clears your account. The same term also refers to the time lag between your depositing a check in the bank and the day the funds become available for use. For example, if you deposit a check on Monday, and you can withdraw the cash on Friday, the float is four days. When you write a check, the float works to your advantage. When you deposit a check, the float works to the bank's advantage.