“Issued and outstanding” means the number of shares actually issued by the company to shareholders. For example, your company may have “authorized” 10 million shares to be issued, but may have only “issued” 6 million of them, meaning there are another 4 million shares that are authorized to be issued at a later time.
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. Outstanding shares are shown on a company’s balance sheet under the heading “Capital Stock.”
Add together the numbers of preferred and common shares outstanding, and subtract the number of treasury shares. The result is the total number of shares outstanding.
Basic and Diluted Shares Outstanding
The basic number of shares outstanding is simply the current number of shares available on the secondary market, whereas the fully diluted shares outstanding calculation takes into account diluting securities such as convertibles (warrants.
The number of outstanding shares, however, can never be more than the number of issued shares. After a company has bought back investor’s stocks, the shares that have been purchased will not be considered outstanding shares, although they are still issued shares.
Treasury stock, also known as treasury shares or reacquired stock, refers to previously outstanding stock that is bought back from stockholders by the issuing company. … These shares are issued but no longer outstanding and are not included in the distribution of dividends or the calculation of earnings per share (EPS).
Authorized shares are the maximum number of shares a company is allowed to issue to investors, as laid out in its articles of incorporation. Outstanding shares are the actual shares issued or sold to investors from the available number of authorized shares.
Day traders will often buy and sell shares of the same company multiple times during the same trading session, thus increasing the trading volume so that it exceeds the number of outstanding shares. Short-term traders provide the market liquidity required to trade more shares than the actual shares outstanding.
Shares are beholden to the same economic laws as anything else that can be bought or sold: price is determined by supply and demand. Thus, the value of each share is inversely related to the number of shares outstanding, with all other things being equal.
Shares outstanding refers to the total number of shares a company has issued, while the public float — also referred to as floating shares or “the float” — are shares that are publicly owned, unrestricted and available on the open market.
Outstanding shares include those held by shareholders and company insiders. Floating shares indicate the number of shares actually available for trading.
The amount of treasury shares can not exceed the maximum proportion of total capitalization specified by laws and regulations. … When the shares are bought back, they have a positive effect on the earning per share ratio and price earnings ratio because the number of outstanding shares is reduced.