Outstanding shares refers to the number of shares that are currently owned by shareholders, including both restricted and unrestricted shares. It is important to know the number of outstanding shares because it is used to calculate key ratios, such as earnings per share (EPS) and price-to-earnings (P/E) ratio.
To calculate EPS, divide net income by the number of outstanding shares. The P/E ratio is calculated by dividing the stock price by EPS.
The number of outstanding shares can be found in a company's annual report or 10-K filing with the Securities and Exchange Commission (SEC). What is the meaning of outstanding shares? When a company goes public, it will issue a certain number of shares of stock. The number of shares that a company has issued is its "outstanding shares." The number of outstanding shares can change over time, as a company may issue new shares of stock (through a secondary offering, for example), or buy back and retire existing shares.
The number of outstanding shares is important for investors to know, as it can affect the price of a stock. For example, if a company has a lot of outstanding shares, each individual share may not be worth very much. On the other hand, if a company has only a few outstanding shares, each share may be worth a lot.
The number of outstanding shares can also affect the voting power of shareholders. For example, if a company has 100 outstanding shares and one shareholder owns 50 of those shares, that shareholder would have control of 50% of the company. What is the opposite of outstanding shares? The opposite of outstanding shares is treasury stock. Treasury stock is stock that has been repurchased by the company and is not available for trading.
What's the difference between shares outstanding and float?
There are two types of shares outstanding: common shares outstanding and float. Common shares outstanding refers to the number of shares of a company's stock that are currently owned by all shareholders, including insiders and restricted shareholders. Float, on the other hand, refers to the number of shares that are available for trading by the public.
The difference between the two is that float excludes restricted shares, which are shares that are not available for public trading. Restricted shares can be held by insiders, employees, or other shareholders who have entered into agreements with the company that restrict their ability to sell their shares.
The float is important because it represents the number of shares that are actually available to be traded in the market. A company's stock price can be more volatile if there are fewer shares available for trading (a low float), and less volatile if there are more shares available for trading (a high float).
How do you determine the number of shares in a stock? In order to determine the number of shares in a stock, you will need to look at the stock's share structure. This can be found in the company's filings with the Securities and Exchange Commission (SEC), which are available on the SEC's website. The share structure will show you the number of shares that are outstanding, as well as the number of shares that are held in reserve.
How do you find the float of a stock? To find the float of a stock, you will need to look at the company's balance sheet. The float is the number of shares that are available to the public to trade. This number is different from the number of shares that are outstanding, which is the total number of shares that the company has issued. The float will be a smaller number than the number of shares outstanding, because some of the shares may be held by insiders who are not able to trade them.