How to Calculate Average Outstanding Shares

by Charlotte Johnson; Updated September 26, 2017

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.

Items you will need

  • Stock share data
  • Calculator
Step 1

Consult with an individual within the finance department of the business to access data concerning outstanding shares.

Step 2

Obtain the number of shareholders.

Step 3

Obtain the total value of all shares within a company's stock.

Step 4

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.

About the Author

Charlotte Johnson is a musician, teacher and writer with a master's degree in education. She has contributed to a variety of websites, specializing in health, education, the arts, home and garden, animals and parenting.