Shares Outstanding
The total number of a company's shares currently held by all shareholders, including insiders and institutions.
Formula
EPS = Net Income ÷ Shares Outstanding
Shares outstanding is the denominator in virtually every per-share calculation — EPS, book value per share, dividends per share. It counts every share held by anyone: retail investors, insiders, institutions, and restricted-stock holders.
The count changes when the company issues new shares (dilution), executes a stock split, or buys back shares. A rising share count dilutes existing holders; a falling count concentrates ownership.
Do not confuse shares outstanding with the float, which excludes restricted or closely held shares that do not freely trade on the open market.
Related Terms
Common Stock
The standard class of share that gives holders voting rights and variable dividends. Most publicly traded shares are common stock.
BeginnerFloat
The number of shares freely available for public trading, excluding insider-held and restricted shares.
IntermediateMarket Capitalization
The total market value of a company's outstanding shares. Market Cap = Share Price × Shares Outstanding.
BeginnerReverse Stock Split
When a company consolidates shares, reducing the count and raising the price per share proportionally. Often a warning sign.
IntermediateSecondary Offering
A new share issuance by an already-public company, or a large block sale by existing shareholders. Dilutive if the company issues new shares.
IntermediateShare
One indivisible unit of ownership in a company. Your ownership percentage equals your shares divided by total shares outstanding.
BeginnerShare Buyback
When a company uses its cash to purchase its own shares on the open market, reducing shares outstanding and boosting EPS.
IntermediateShort Selling
Borrowing shares and selling them, hoping to buy them back cheaper later. Profit = sell price minus buy-back price.
IntermediateStock Split
When a company divides each existing share into multiple new shares, lowering the price per share while total value stays the same.
Beginner