What is the Free-float market capitalization? Free float stands for the shares that are open for trading . All shares may not be Free-floating. The Free-floating market capitalization is calculated by taking the equities price and multiplying it by the number of shares readily available in the market. What is Market Capitalization? Market capitalization refers to the total dollar market value of a company’s outstanding shares . It is the combined worth of all the stocks of different companies within stock exchanges . This market capitalization is again multiplied by the free float factor to determine the free-float market capitalization. Market capitalization is one of the most important characteristics. That helps the investor determine the returns and the risk in the share. It also helps the Investor choose the stock. That can meet their risk and diversification criterion. Sensex is Calculated How Sensex Works Example: Suppo...