Outstanding Shares

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Home Startup Terms Glossary Outstanding Shares

What are Outstanding Shares?

There are times where a company’s available shares are not all purchased at a time. When a company has vacant shares that are not being held by a shareholder, it is referred to as an outstanding share. Outstanding shares are often used to help calculate the valuation of a company as a whole.

Outstanding Shares Examples:

Example of outstanding shares:

  • Example 1. A tech startup company goes public and issues 150 shares to the stock market. After a few weeks, 100 shares have been purchased. The remaining 50 shares that are not held by anyone are outstanding shares.

Learn more about outstanding shares with this article .

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