SharesShares Outstanding
The total number of shares of stock currently held by all shareholders. Includes restricted shares held by insiders but not unexercised options.
Formula
Basic Shares Outstanding = Total issued shares − Treasury shares
How to Interpret
Watch the trend. Increasing shares = dilution (bad for existing shareholders). Decreasing = buybacks (often good). SBC-heavy tech companies can dilute 2-5% annually, silently eroding shareholder value.
Why It Matters
Shares outstanding is the denominator in EPS, the multiplier in market cap, and the key to understanding dilution. A company that grows earnings 10% but dilutes shares 5% only delivers 5% EPS growth.