How Do You Calculate Average Outstanding Shares?
Outstanding shares, also known as “shares outstanding,” is a financial term used to describe the shares of a business’ stock that are owned by the public, including individuals within the business itself. Figuring outstanding shares is key information in regard to a company’s assets and budget. Understanding the average outstanding share gives a picture of what the typical shareholder’s share is worth. Consult with an individual within the finance department of the business to access data concerning outstanding shares. Obtain the number of shareholders. Obtain the total value of all shares within a company’s stock. Divide the total value by the total number of shareholders to to find the average outstanding share. For instance, if a company’s total stock value is $2,000,000 and there are 2,000 shareholders, the average outstanding share is $1,000.
