Total Outstanding Shares

Total Outstanding Shares, also referred to as Total Shares Outstanding, is the total number of a company's shares of stock that are currently owned by all shareholders, including institutional investors, individual investors, and insiders. These are shares that have been issued by the company and are in circulation in the stock market.

Total Outstanding Shares are a key component in calculating a company's market capitalization (market cap). Market cap is determined by multiplying the current market price per share by the total number of outstanding shares. It's a fundamental measure that represents the total value of a company as perceived by the stock market.

The formula for calculating market capitalization using total outstanding shares is:

Market Capitalization = Current Market Price per Share × Total Outstanding Shares

Total Outstanding Shares can change over time due to various corporate actions, including stock issuances, stock buybacks (repurchases), and the issuance of new shares in secondary offerings. Changes in the number of outstanding shares can affect a company's market cap and, consequently, its ranking and classification in the stock market (e.g., small-cap, mid-cap, large-cap).

Investors and analysts often pay close attention to both market capitalization and total outstanding shares when evaluating a company's size, liquidity, and investment potential. These metrics can provide insights into a company's relative position in the market and its ability to raise capital through the issuance of additional shares or to return value to shareholders through buybacks.