Floating Security Definition
Floating Security term is used in 3 different aspects:
1. It refers to securities that pay an interest rate that fluctuates according to the performance of an index, such as a 1 month LIBOR (London Inter-Bank Offered Rate).
2. Securities bought and held in a broker's name with the expectation that it will be quickly resold at a profit.
3. Any part of a new stock issue not yet sold.