A Float Shrink is a reduction in the number of a publicly traded company’s shares available for trading. Float Shrink can occur in a number of ways: through a buyback or repurchase of a company’s shares, an investor acquiring a large stake in a company or even through a reverse split or share consolidation. The term Float Shrink however, is most commonly associated with share buybacks. A Float Shrink achieved through a share buyback reduces the number of total shares outstanding for a company, which has a positive impact on Earnings per Share (EPS), Cash Flow per Share and Return on Equity.