Shares outstanding

Shares outstanding is the total number of a company's shares currently held by all shareholders, institutions, insiders, and the public combined. It is one of the two inputs, along with the share price, used to calculate market capitalisation.

The formula is: Share price x Shares outstanding = Market cap.

Companies usually report two versions. Basic shares outstanding counts only shares that currently exist. Diluted shares outstanding adds shares that could be created later through stock options, restricted stock units, or convertible securities, and is therefore always equal to or higher than the basic count. Diluted shares outstanding is generally used for per share calculations like earnings per share, since it accounts for the maximum future dilution existing shareholders could face.