Not to be confused with authorized shares, outstanding shares refer to the number of stocks that a company has issued. … If it offered 300 shares in an IPO, gave 150 to the executives, and retained 550 in the treasury, then the number of shares outstanding would be 450 shares (300 float shares + 150 restricted shares).
What Are Shares Outstanding? Shares outstanding refer to a company’s stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.
The number of stocks outstanding is equal to the number of issued shares minus the number of shares held in the company’s treasury. It’s also equal to the float (shares available to the public and excludes any restricted shares, or shares held by company officers or insiders) plus any restricted shares.
An issued share is simply a share that has been given to an investor, whereas outstanding shares refer to all the shares that have been issued by a company.
You may also see outstanding shares used as a variable in financial ratios, making them important for fundamental analysis. … Only a majority vote by the shareholders can increase or decrease the number of authorized shares. Often, a company does not issue all of its authorized shares at once.
|Avg Vol (3 month) 3||26.36M|
|Shares Outstanding 5||1.03B|
|Implied Shares Outstanding 6||N/A|
|% Held by Insiders 1||19.39%|
Shares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. They are distinguished from treasury shares, which are shares held by the corporation itself, thus representing no exercisable rights.
The number of outstanding shares can be found on a company’s most recent quarterly or annual filing with the Securities and Exchange Commission (SEC), usually on its balance sheet in the shareholders’ equity section.
A company’s outstanding shares may be less than or equal to issued shares. That is because they do not consider the shares in reserve. However, issued shares include those that were initially allocated to investors and those in reserve. Also, outstanding shares do not include preferred shares but issued shares do.
Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company’s equity and measures the book value of a firm on a per-share basis.
Shares outstanding and floating stock are different measures of the number of shares of a particular company’s stock. … Outstanding shares include those held by shareholders and company insiders. Floating shares indicate the number of shares actually available for trading.
In contrast, outstanding shares do not include treasury stock. The financial statements. … Outstanding shares help in determining the voting power in the Company for each shareholder and also the total number of voting shares. The Outstanding Shares are useful to know the financial performance of the Company per share.
Market cap—or market capitalization—refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For example, a company with 20 million shares selling at $50 a share would have a market cap of $1 billion.
Microsoft has inched past Apple to become the world’s most valuable publicly traded company.
Companies don’t run out of stock because they only sell it once. A company only sells stock during an IPO (initial public offering). Before an IPO, a company will still have investors, but their company is private.
Shares with the greatest cost basis are sold first. If more than one lot has the same price, the lot with the earliest acquisition date is sold first. Shares with a long-term holding period are sold first, beginning with those with the greatest cost basis.