Bookkeeping

What Are Outstanding Shares?

The company will now have to sell 100 shares from its treasury to the warrant holders if all of these warrants are exercised. To provide a fair view of the performance, companies usually compute both Basic and Diluted Shareholding. It is important to keep a close watch on the company’s Outstanding Shares as this number doesn’t remain static and keeps changing on account of new issues and repurchasing by the company more often. Outstanding shares have a huge impact on other financial parameters and fluctuation in the ratios can affect...