Float

1. Time interval, or delay, between the start and completion of a specific phase or process that occurs along the cash flow timeline. Certain types of float can be quantified and expressed in dollar amounts.

2. The timing benefit enjoyed by insurance companies of receiving insurance premia in advance (of the period covered by the related insurance contract).

3. The initial offering for sale/listing of a company’s shares on an exchange.

4. The act of removing a fixed foreign exchange rate regime and allowing a currency to be freely traded.

See also

• Balance and transaction activity
• Bank float
• Clearing float
• Collection float
• Flotation
• Initial public offering
• Primary market