Shares outstanding, also known as outstanding shares, are the total number of a company's shares that are currently held by investors and are available for purchase on the open market. Shares outstanding represents the amount of equity that the company has issued to investors.
Outstanding shares are used as a key metric in the financial industry for various purposes, including market capitalization calculations, determining a company's earnings per share (EPS), and calculating a company's price-to-earnings (P/E) ratio.
Market capitalization is calculated by multiplying a stock's price per share by its outstanding shares. EPS is calculated by dividing a company's net income by its outstanding shares. P/E ratio is calculated by dividing a company's market capitalization by its net income.
In addition, outstanding shares can also be used to measure a company's ownership structure, as the percentage of outstanding shares held by insiders (such as executives and board members) and institutional investors (such as mutual funds and pension funds) can provide insight into a company's governance and overall market sentiment.
Overall, shares outstanding is a crucial metric in the financial industry, as it can provide valuable insights into a company's financial health and overall performance.
Shares Outstanding, Outstanding Shares
Financial Term
Shares outstanding, also known as outstanding shares, are the total number of a company's shares that are currently held by investors and are available for purchase on the open market. Shares outstanding represents the amount of equity that the company has issued to investors.
Outstanding shares are used as a key metric in the financial industry for various purposes, including market capitalization calculations, determining a company's earnings per share (EPS), and calculating a company's price-to-earnings (P/E) ratio.
Market capitalization is calculated by multiplying a stock's price per share by its outstanding shares. EPS is calculated by dividing a company's net income by its outstanding shares. P/E ratio is calculated by dividing a company's market capitalization by its net income.
In addition, outstanding shares can also be used to measure a company's ownership structure, as the percentage of outstanding shares held by insiders (such as executives and board members) and institutional investors (such as mutual funds and pension funds) can provide insight into a company's governance and overall market sentiment.
Overall, shares outstanding is a crucial metric in the financial industry, as it can provide valuable insights into a company's financial health and overall performance.