On platforms like Dividend Data, you can find the Shares Outstanding for various stocks. This is in the stock research tool.
Definition:
Shares Outstanding refer to the total number of shares of a company that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.
Types of Shares Outstanding
There are generally two types:
Basic Shares Outstanding: This includes all common shares currently owned by shareholders.
Diluted Shares Outstanding: This includes all shares that could potentially be created through the conversion of convertible securities.
Why is Shares Outstanding Important?
Company Valuation: Shares Outstanding is used in calculating Market Capitalization, an important measure of a company's size.
Earnings Per Share (EPS): It is a crucial component in determining a company's EPS, a significant metric used by investors to gauge a company's profitability.
Voting Power: The number of shares outstanding directly impacts shareholder voting power and dividend distribution.
Factors Affecting Shares Outstanding
Shares Outstanding can change due to:
Stock Splits and Reverse Splits: These can increase or decrease the number of shares outstanding without changing the company's overall valuation.
Share Buybacks: When a company buys back its shares, it reduces the number of shares outstanding, often intending to increase the stock value.
Issuance of New Shares: Companies may issue new shares to raise capital, which increases the number of shares outstanding.