Outstanding Shares - Definition, Formula, Types

WallStreetMojo
WallStreetMojo
36.6 هزار بار بازدید - 5 سال پیش - In this video, we will
In this video, we will study the definition, types of Outstanding Shares and its impact on investors.

𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐒𝐡𝐚𝐫𝐞𝐬(𝐬𝐭𝐨𝐜𝐤𝐬)?
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Outstanding shares are shares owned by shareholders, officials of the firm and public investors, including retail investors, institutional investors and insiders.

𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐒𝐡𝐚𝐫𝐞𝐬 𝐯𝐬 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐞𝐝 𝐒𝐡𝐚𝐫𝐞𝐬
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Outstanding shares differ from authorized shares (issued shares), since authorized stocks are the amount of stock that a company is legally entitled to issue, while outstanding shares are already issued on the market.

𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐒𝐡𝐚𝐫𝐞𝐬 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
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Outstanding Shares Formula = Issued Stock - Treasury Stock

𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐒𝐡𝐚𝐫𝐞𝐬
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There are 2 types of stocks outstanding

#1 - Basic Share Outstanding
#2 - Fully Diluted Share Outstanding

𝐁𝐚𝐬𝐢𝐜 𝐒𝐡𝐚𝐫𝐞 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠
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Basic shares mean the number of presently outstanding stocks.

𝐅𝐮𝐥𝐥𝐲 𝐃𝐢𝐥𝐮𝐭𝐞𝐝 𝐒𝐡𝐚𝐫𝐞 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠
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The fully diluted number of outstanding shares informs you how many outstanding stocks there might be.

𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐒𝐡𝐚𝐫𝐞𝐬 𝐨𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬
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#1 - A higher number of outstanding shares ensures more secure company with a higher price flexibility, as many more traded stocks are required to create a significant change in the stock price.

#2 - A number of outstanding stocks is an important concern for all shareholders, as they are included in the newest market valuation and earnings per share.

To know more about 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐒𝐡𝐚𝐫𝐞, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/outsta...

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5 سال پیش در تاریخ 1398/03/27 منتشر شده است.
36,637 بـار بازدید شده
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