Shares Outstanding
The total number of a company's shares currently held by all shareholders, including promoters and institutions.
Formula
Shares Outstanding = Issued Shares - Treasury Shares; also equals Paid-Up Share Capital / Face Value
Unit
shares
In depth
Share count is the denominator of every per-share figure, so a change in it changes earnings per share, book value per share and dividend per share without anything happening to the business. It rises through fresh issues, conversions, bonus issues and option exercises, and falls through buybacks. India does not permit companies to hold treasury shares from a buyback — bought-back shares must be extinguished — so a buyback here permanently reduces the count. Comparing this year's per-share figures with last year's without checking the count is how dilution goes unnoticed.
Worked example
Paid-up share capital of ₹60 crore at a face value of ₹2 gives 30 crore shares. Issue 3 crore shares to fund an acquisition and the count becomes 33 crore; the same ₹90 crore of profit now produces EPS of ₹2.73 rather than ₹3.00.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Shares Outstanding” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.