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prolepunk | 6 years ago

What does 'generate float' mean as a financial term?

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sambroner|6 years ago

It basically means "hold cash", so visa, stripe, insurance companies etc. all get cash from customers, hold it for a period of time, and distribute it to customers.

Holding it for a period of time is "generating float." For many of these companies the float is a large multiple of the profit.