Here below is a good explanation of Floating Ground;
Floating Ground
Electrical circuits, however, don't necessarily have to be connected to a true earth ground; they may operate with a kind of "floating" ground. In fact, for the designer and engineer, the sense of "ground" may just become an intellectual convenience. For example, a flashlight and other battery-operated devices--even your car--work perfectly well without being connected to a true earth ground. In a car, the negative battery post and the chassis frame serve as the "ground" to complete the electrical circuits in the car, yet the entire car is insulated from the real earth by the rubber tires. In fact, the car is a good example of a self-contained electrical system tied to a common ground--the car chassis and the negative battery terminal. All the electrical devices on the car are tied to that common ground path through the metal car frame and body.
So within one system--say an AV receiver--the ground path may be tied to the chassis and one of the prongs on the AC plug or the third prong an a 3-prong plug, or it may not, in which case it could use an internal "floating" ground that's not connected to the chassis.
Regards,
Satyam Bachani.