The float is actually part of the shares outstanding. When a company is formed, articles of incorporation are filed with the proper state authorities. The articles will set out the number of shares the company is allowed to issue upon incorporation to raise money to operate. A company usually will not issue all of its authorized shares at its initial public offering (IPO). Instead, it will reserve a portion of the authorized shares to issue in the future if it needs to raise money again (secondary offering). The shares that the company authorizes and does not reserve are the outstanding shares. These outstanding shares include those that are available for the public to trade, or the float, and the restricted shares that are not yet available for trading.