What is Free Float velocity?
The free float velocity is a liquidity measure comparing the number of traded shares with the number of listed shares available for trading (free float).
The data relevant for his analysis are based on one year trading up to the Review Cut-Off date. The free float is based on the current Free Float Factor, with the notion that at least 25% is applied as Free Float Factor in this calculation.
Companies that fail to meet the free float velocity requirement cannot be added to the PSI 20 and will be removed at the annual review in March.