In short
- Market cap = price × number of shares.
- Free float = the part of the shares actually available for trading.
- Liquidity = how easily you can buy or sell without moving the price too much.
Market capitalisation
This is the value the market gives a company. A made-up example: 10 million shares at 200 dirhams give a market cap of 2 billion dirhams. The price alone therefore says nothing about size: a share at 50 dirhams can belong to a much bigger company than a share at 500 dirhams.
Free float
Some shares often stay with shareholders who do not sell them day to day, such as founders or the controlling group. The rest is the free float. In our example, if 20% of the capital is free float, only 2 million shares trade regularly, or 400 million dirhams.
Free float matters for the MASI, because the index is weighted by free-float market cap. A real example: according to Le Matin, the review at the end of October 2026 cut Managem’s free-float factor from 15% to 10%, and its weight in the MASI from about 10.55% to 6.86%. This review was then temporarily cancelled. See our article on Managem.
Liquidity
A stock is liquid when many shares trade each day, with a small gap between the best buy price and the best sell price. Let us compare two made-up stocks:
| Indicator | Liquid stock | Illiquid stock |
|---|---|---|
| Daily volume | 20 million MAD | 50,000 MAD |
| Buy-sell gap | 100.00 / 100.10 MAD | 100 / 104 MAD |
| Effect of a 100,000 MAD order | Usually small | The price can move a lot |
Why these three ideas go together
- A small free float often limits the shares available and can amplify changes.
- A large market cap does not ensure high liquidity.
- Volume on a single day can be misleading, especially with the block market.
This data appears on price pages. Our guide to reading stock prices explains each column.
Frequently asked questions
Is market cap a company’s true value?
It is the price the market gives at a precise moment. It can change every day and guarantees no value.
Where can I find a company’s free float?
In the Casablanca Stock Exchange’s publications on indices and in the company’s documents.
This article is for information and educational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investing in shares involves a risk of capital loss. Check figures against official sources (Casablanca Stock Exchange, AMMC) and consult a licensed professional. Read the full disclaimer.
