In other words, outstanding stock is the number of shares that the shareholders own. What Does Outstanding Stock Mean? When a company is incorporated, it drafts a corporate charter that dictates the number of shares the corporation has to issue.
Full Answer
What is outstanding stock and how is it determined?
Definition: Outstanding stock are the shares of a corporation that are issued and held by the shareholders. In other words, outstanding stock is the number of shares that the shareholders own. What Does Outstanding Stock Mean?
What are shares outstanding on a balance sheet?
Shares outstanding are the stock that is held by a company’s shareholders on the open market. Along with individual shareholders, this includes restricted shares that are held by a company’s officers and institutional investors. On a company balance sheet, they are indicated as capital stock.
What is the difference between shares outstanding&floating stock?
While shares outstanding account for company stock that includes restricted shares and blocks of institutional shares, floating stock specifically refers to shares that are available for trading. Floating stock is calculated by taking outstanding shares and subtracting restricted shares.
What does'outstanding shares'mean in a share price?
BREAKING DOWN 'Outstanding Shares'. In other words, the number of shares outstanding represents the amount of stock on the open market, including shares held by institutional investors and restricted shares held by insiders and company officers.
What does the term outstanding stock mean?
Key Takeaways. Shares outstanding refer to a company's stock currently held by all its shareholders. These include share blocks held by institutional investors and restricted shares owned by the company's officers and insiders. A company's number of shares outstanding is not static and may fluctuate wildly over time.
What are outstanding shares example?
The outstanding number of shares may be either equal to or less than the number of authorized shares. For example, a company might authorize 10 million shares to be created for its IPO, but end up actually only issuing nine million of the shares.
What does outstanding mean in finance?
(Finance: Banking) Money that is outstanding has not yet been paid and is still owed to someone. The total debt outstanding is $70 billion. The company had 140.9 million shares outstanding in the latest quarter. Money that is outstanding has not yet been paid and is still owed to someone.
What are outstanding stock options?
An outstanding stock option refers to an option contract that has not been exercised and has not expired. An option contract has monetary and intrinsic value. There are several things you can do with a stock option, including: Exercising the stock option to purchase or sell the underlying stock.
How are outstanding shares determined?
The number of shares outstanding for a company is equal to the number of shares issued minus the number of shares held in the company's treasury. If a company buys back its own stock, those repurchased shares are called treasury stock. The number of shares outstanding can (and usually does) fluctuate over time.
How do you find the outstanding shares of stock?
The number of stocks outstanding is equal to the number of issued shares minus the number of shares held in the company's treasury.
What is outstanding stock vs issued?
Issued shares are the total shares issued by the Company. Whereas outstanding shares are the shares with the shareholders, i.e., it does not include the shares repurchased by the Company. Thus, subtracting treasury shares from the issued shares will give outstanding shares.
What is outstanding share capital?
Financial Terms By: o. Outstanding share capital. Issued share capital less the par value of shares that are held as the company's treasury stock. Most Popular Terms: Earnings per share (EPS)
What does outstanding purchase mean?
Outstanding Purchases means the total Purchase Price for all Purchased Accounts for which Purchaser has not received Collected Payments in full and includes the Repurchase Price for all Repurchased Accounts for which Purchaser has not received Collected Payments in full or the Repurchase Price.
What is outstanding ownership?
Outstanding Ownership Amount means the aggregate Ownership Amount of all Certificates Outstanding at the date of determination.
What is outstanding stock?
In other words, outstanding stock is the number of shares that the shareholders own.
What does the equity section of a financial statement say?
Most financial statements either say in the equity section or notes how many shares are authorized and how many are outstanding during the period. This gives investors and creditors an idea of how much equity financing is possible in the future.
What is stock outstanding?
Shares outstanding are the stock that is held by a company’s shareholders on the open market. Along with individual shareholders, this includes restricted shares that are held by a company’s officers and institutional investors. On a company balance sheet, they are indicated as capital stock.
What is a company's stock 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. A company's number of shares outstanding is not static and may fluctuate wildly over time.
What happens when a company considers its stock to be undervalued?
Often times, if a company considers its stock to be undervalued, it will institute a repurchase program, buying back shares of its own stock. In an effort to increase the market value of remaining shares and elevate overall earnings per share, the company may reduce the number of shares outstanding by repurchasing, or buying back those shares, thus taking them off the open market.
Why is the weighted average of outstanding shares used?
Since the number of outstanding shares is incorporated into key calculations of financial metrics such as earnings per share and because this number is so subject to variation over time, the weighted average of outstanding shares is often used in its stead in certain formulae.
What does the number of shares outstanding mean?
In other words, the number of shares outstanding represents the amount of stock on the open market, including shares held by institutional investors and restricted shares held by insiders and company officers. A company’s outstanding shares can fluctuate for a number of reasons. The number will increase if the company issues additional shares.
How much of BlackBerry stock did they buy back in 2015?
announced a plan to repurchase 12 million of its own outstanding shares in an effort to increase stock earnings. BlackBerry plans to buy back 2.6% of its more than 500 million outstanding float shares as an increase in equity incentive.
How is floating stock calculated?
Floating stock is calculated by taking outstanding shares and subtracting restricted shares. Restricted stock are shares that are owned by company insiders, employees and key shareholders that are under temporary restriction, and therefore cannot be traded.
