Free Float: How do Qatari Stocks Compare and Why Does it Matter?

When looking to invest, one key factor that often gets overlooked is free float shares. These are the shares available for public trading, excluding those held by insiders, governments, or large, long-term stakeholders.

Why does this matter? The higher the percentage of free float, the more liquid a stock is, making it easier to buy and sell without huge price swings.

The transportation sector leads with 96% of its shares free-floating, followed by Real Estate at 95%, and Consumer Goods at 92%.

Other sectors like Insurance, Banks & Financial Services, Industrials, and Telecoms follow with varying levels of free float shares, but all above 70%.

For investors, free float shares are an important metric to consider. A high percentage of free float indicates greater liquidity, meaning its easier for investors to buy and sell shares without causing

significant price movements. This also means the stock is less susceptible to price manipulation by a small group of shareholders.

On the other hand, a low free float can mean limited availability of shares, which might lead to higher volatility.

Knowing which sectors have a higher percentage of free-float shares can help investors assess liquidity

and risk when making investment decisions.

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