کیان دهقانی

The number of shares outstanding for a company is equal to the number of shares issued minus the number of shares held in the company's treasury. If a company buys back its own stock, those repurchased shares are called treasury stock. Outstanding shares impact a company’s market capitalization, which is calculated by multiplying the stock price by the number of outstanding shares. Calculating Weighted Average Number of Shares With the $50 million in cash, in theory it could instantly repurchase 5 million shares at $10 each. Obviously, those option holders in theory could exercise their options to create new shares. Should they do so, however, they would also contribute $50 million in cash to the corporate treasury. Generally speaking, stocks with smaller floats will experience more volatility than those with larger floats. Get instant access...