Float

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The term 'float' may refer to:

  • Timing differences;
  • A company going public; or
  • Exchange rates.


Timing differences

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 money amounts. Float is often a cost for banks' customers, because the customer loses use of the funds in transit, for the time they remain in transit.


2.

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


Going public

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


Exchange rates

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


See also