Outstanding Shares
Outstanding Shares refer to the total number of Shares that are currently held by all Shareholder/">Shareholders of a company, including Institutional Investors and company insiders. These Shares are issued and available for trading in the market, representing the ownership in the company.
Outstanding Shares are crucial for calculating various financial metrics, including Share/">Earnings Per Share (EPS), Market Capitalization, and Shareholder/">Shareholder Equity.
Example: If a company has issued a total of 1 million Shares and 200,000 Shares are held in the company’s treasury (not available for trading), then the outstanding Shares would be 800,000.
Case: A company, XYZ Corp, initially issued 1,000,000 Shares. After a buyback, it repurchased 150,000 Shares. The outstanding Shares after the buyback would be 850,000. If XYZ Corp later issues another 200,000 Shares, the outstanding Shares would then increase to 1,050,000.