Public float

In the context of stock markets, the public float or free float represents the portion of shares of a corporation that are in the hands of public investors as opposed to locked-in shares held by promoters, company officers, controlling-interest investors, or governments.

[5] By public floating, a company gains access to interest-free capital as there is no interest to be paid on shares.

Costs of company registration are also very high making it difficult for certain small businesses to float shares.

Along with this, a comprehensive accounting record is also needed like sales and whom they are made to (until and unless it is a retail business), purchases and from whom they are supplied, stock and debts – all of them are necessary to be provided.

[4] Secondly, sometimes companies provide false financial reports to sell shares which lead towards further complications in market.

[7] Additionally, Lehman Brothers went bankrupt in 2008 after using a small firm to secretly manipulate its balance sheets.

[8] Both cases illustrate that, as a result of pressure to sell shares, companies may manipulate their financial statements, and later face the consequences (Lehman Brothers' bankruptcy in 2008, AIG's bailout by the U.S. government in 2008).