Investing for Beginners , investing

Outstanding share number is an important characteristic for the stock value of every stock company. This number represents all the issued shares in the company except the shares that are held by the company itself. This number usually is disclosed at depository, stock exchange or company’s website or annual reports. Outstanding share number changes all the time when company implements new share issues, stock splits or stock buyback programs. 

Outstanding share number is important because it is closely related to the stock valuation and many ratios depend on this number: P/E ratio, PEG ratio and many other valuation multiples. Outstanding share number multiplied by the last share price is equal to market capitalization.