What does outstanding shares mean?
Is that correct, so that number changes every day?
OldFart said: The number of outstanding shares is pretty stable, a public company needs to amend its articles of incorporation to issue additional shares. It happens but not very often and the existing shareholders are not happy bcz it dilutes their shares
Outstanding shares=authorized stock-issued stock-treasury stock
When a company files with the SEC to sell shares it receives x # of authorized shares. They issue only a fraction of these which then become "outstanding shares." When they issue new shares they are simply taking from their supply of authorized shares.
Shares that the company buys back are known as treasury stock. They can save these for a rainy day if they need to raise capital without wanting to further dilute shareholders or for a variety of other reasons.
Outstanding shares + treasury stock = authorized stock - issued stock
the right side is just the "unused shares"
Outstanding shares + treasury stock = unused shares
which is clearly not right
Here is from wikipedia
- Shares authorized = Shares issued + Shares unissued
- Shares issued = Shares outstanding + Treasury stock