How to Calculate Average Outstanding Shares | Bizfluent

How to Calculate Average Outstanding Shares

Feb 6, 2010
1 minute read

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.

Things You Will Need
  • Stock share data

  • Calculator

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

Obtain the number of shareholders.

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

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.

Charlotte Johnson

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.

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