After CMB Regulation, Free Float Ratio of 247 Stocks Declined

A new regulation by the Capital Markets Board (CMB) has led to a decline in the free float ratio of 247 stocks traded on Borsa Istanbul. The regulation changed the method used to calculate the free float ratio, reducing the amount of shares in actual circulation. The new calculation method caused companies' free float ratios to appear lower compared to previous periods. This development stands out as one that could affect the weights of the relevant stocks in indices and investors' decision-making processes. The free float ratio refers to the proportion of a company's shares traded on the stock exchange to its total shares. A decrease in this ratio is closely monitored by investors in terms of the stock's liquidity and market depth. The CMB's regulation has reshaped a criterion that institutional investors, in particular, consider in their portfolio management strategies. Market experts note that the change could lead to outflows from index funds or volatility in trading volumes for some stocks. However, the long-term effects of the regulation will become clear as companies adapt to the new situation. Not investment advice.