Shares outstanding in the context of "Capitalization-weighted index"

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⭐ Core Definition: Shares outstanding

Shares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. They are distinguished from treasury shares, which are shares held by the corporation itself, thus representing no exercisable rights. Shares outstanding and treasury shares together amount to the number of issued shares.

Shares outstanding can be calculated as either basic or fully diluted. The basic count is the current number of shares. Dividend distributions and voting in the general meeting of shareholders are calculated according to this number. The fully diluted shares outstanding count, on the other hand, includes diluting securities, such as warrants, capital notes or convertibles. If the company has any diluting securities, this indicates the potential future increased number of shares outstanding.

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Shares outstanding in the context of Market capitalisation

Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.

Market capitalization is equal to the market price per common share multiplied by the number of common shares outstanding.

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Shares outstanding in the context of List of public corporations by market capitalization

The following is a list of publicly traded companies, that have the largest market capitalization or sometimes described as their "market value".

Market capitalization is calculated by multiplying the share price on a selected day and the number of outstanding shares on that day. The list is expressed in USD millions, using exchange rates from the selected day to convert other currencies.

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Shares outstanding in the context of Net asset value

Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end, mutual funds, hedge funds, and venture capital funds. Shares of such funds registered with the U.S. Securities and Exchange Commission are usually bought and redeemed at their net asset value. It is also a key figure with regard to hedge funds and venture capital funds when calculating the value of the underlying investments in these funds by investors. This may also be the same as the book value or the equity value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors, thereby representing the net asset value per share. NAV gained momentum in REIT 20 years after enactment of Public Law 86-779,signed by President Dwight D. Eisenhower in 1960. This was as a result of its extensive use by Green Street Advisors in 1985.

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Shares outstanding in the context of Share repurchase

Share repurchase, also known as share buyback or stock buyback, is the reacquisition by a company of its own shares. It represents an alternative way of returning money to shareholders instead of dividends. Repurchases allow stockholders to legally reduce taxes, where instead of paying tax on dividends they pay the lower taxes on the capital gains when selling the stock, whose price is now proportionally higher because of the smaller number of shares outstanding.

In most countries, a corporation can repurchase its own stock by distributing cash to existing shareholders in exchange for a fraction of the company's outstanding equity; that is, cash is exchanged for a reduction in the number of shares outstanding. The company either retires the repurchased shares or keeps them as treasury stock, available for reissuance.

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Shares outstanding in the context of Stock dilution

Stock dilution, also known as equity dilution, is the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new equity. New equity increases the total shares outstanding which has a dilutive effect on the ownership percentage of existing shareholders. This increase in the number of shares outstanding can result from a primary market offering (including an initial public offering), employees exercising stock options, or by issuance or conversion of convertible bonds, preferred shares or warrants into stock. This dilution can shift fundamental positions of the stock such as ownership percentage, voting control, earnings per share, and the value of individual shares.

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Shares outstanding in the context of Public float

In the context of stock markets, the public float or free float represents the portion of shares of a corporation that are in the hands of public investors as opposed to locked-in shares held by promoters, company officers, controlling-interest investors, or governments. This number is sometimes seen as a better way of calculating market capitalization, because it provides a more accurate reflection (than entire market capitalization) of what public investors consider the company to be worth. In this context, the float may refer to all the shares outstanding that can be publicly traded.

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