What is Shares Outstanding?
Shares outstanding refers to all shares currently owned by stockholders, company officials, and investors in the public domain, but does not include shares repurchased by a company.
How Does Shares Outstanding Work?
shares that are outstanding include stock owned by the firm's shareholders and owners. Shares outstanding does not include treasury stock, which are stock shares that are repurchased by the company. It also does not include unissued shares.
The number of shares outstanding is listed on a company's balance sheet as "Capital Stock" and is reported on the company's quarterly filings with the US Securities and Exchange Commission. The number of shares outstanding can also be found in the capital section of a company's annual report.
Why Does Shares Outstanding Matter?
Shares Outstanding is included in the market capitalization formula (outstanding shares multiplied by current share price) and earnings per share formula (EPS calculated as outstanding shares divided by earnings), two major measures of a company's value and performance used by investors.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
These days, investors want exposure to international markets. Luckily, the options to get exposure to foreign-based investments are about as plentiful as they have ever been. But sometimes...Read More →
When I was in college, I eagerly applied for a credit card. It seemed that financial freedom was mine. All I had to do was swipe! Unfortunately, I racked up a...Read More →
Buying a second home before selling the first is a scary proposition. But some move-up buyers living in tight real estate markets have little choice if they want to...Read More →
With the foreclosure market what it has been in recent years, we kept hearing horror stories about the insane things people do to their homes when they face eviction....Read More →