question: How much does “outstanding shares” of a stock have to do with the value of the company?
comment: > Where do these shares come from and how are they created? Outstanding shares can be contrasted with "treasury shares", shares owned by the company itself. They can be sold without changing the stock price as there is no change in proportion of ownership per share such as with a stock split.
passages: Shares outstanding can be calculated as either basic or fully diluted. The basic count is the current number of shares. Dividend distributions and voting in the general meeting of shareholders are calculated according to this number. The fully diluted shares outstanding count, on the other hand, includes diluting securities, such as warrants, capital notes or convertibles. If the company has any diluting securities, this indicates the potential future increased number of shares outstanding.
  
  Section::::Finding the number of shares outstanding.
   The number of outstanding shares may change due to changes in the number of issued shares as well as the change in treasury shares. Both can occur at any time of the year. There are several useful public sources to find the number of shares outstanding of a given corporation.
  
  Section::::Finding the number of shares outstanding.:Public traded companies' investor relations.
   Shares outstanding
  
  Shares outstanding are all the shares of a corporation or financial asset that have been authorized, issued and purchased by investors and are held by them. They have rights and represent ownership in the corporation by the person who holds the shares. They are distinguished from treasury shares, which are shares held by the corporation itself and have no exercisable rights. Shares outstanding plus treasury shares together amount to the number of issued shares.
   The financial reporting obligation of the public traded company also ensures the publication of issued and outstanding shares. The reports are usually available in the investor relations section of the company's website. Web directories are supporting direct access to company websites. Public traded companies bundles the reports normally in the investor relations section, e.g. Deutsche Bank AG, Eni S.p.a., Anheuser Busch InBev SA, EDP - Energias do Brasil SA or Accor SA.
  
  Section::::Finding the number of shares outstanding.:Authorized information service.
   To calculate the total number of shares used in the calculation, FASB prescribes using the treasury method to calculate the dilutive effect of any instruments that could result in the issuance of shares, including:
  
  BULLET::::- Stock options
  
  BULLET::::- Warrants
  
  BULLET::::- Convertible preferred stock
  
  BULLET::::- Convertible bonds
  
  BULLET::::- Share-based payment arrangements
  
  BULLET::::- Written put options
  
  BULLET::::- Contingently issuable shares
  
  "Earnings: "
   BULLET::::- Published accounts are only disclosed weeks or months after the year-end date, meaning that the information disclosed is already out of date.
  
  In practice, EV calculations rely on reasonable estimates of the market value of these components. For example, in many professional valuations:
  
  BULLET::::- Unfunded pension liabilities are valued at face value as set out in notes to the latest available accounts.
  
  BULLET::::- Debt that is not publicly traded is usually taken at face value, unless the company is highly geared (in which case a more sophisticated analysis is required).
   In many countries, there is an information service authorized or provided by the local financial authority which gives access to companies' financial reporting. In the United States, the number of shares outstanding may be obtained from quarterly filings with the U.S. Securities and Exchange Commission. Quarterly filings are accessible using the US EDGAR. In Germany, those figures are available using the German company register, the central platform for storage of company data. In the Netherlands, the Netherlands Authority for the Financial Markets (AFM) provides on its website a register of issued capital. In Italy, the Commissione Nazionale per le Società e la Borsa (CONSOB) provides on its website a register of issuers with latest total shares.
   The Company in early 2011 approved the voluntary suspension of its duty to file reports with the SEC and the voluntary deregistration of its common stock. The Company was eligible to suspend its reporting obligations and deregister its common stock because there were fewer than 300 holders of record of the Company’s common stock. This decision resulted in expense savings and reduced reporting burdens.
   Under International Financial Reporting Standards, diluted earnings per share is calculated by adjusting the earnings and number of shares for the effects of dilutive options and other dilutive potential common stock. Dilutive potential common stock includes:
  
  BULLET::::- convertible debt
  
  BULLET::::- convertible preferred stock
  
  BULLET::::- share warrants
  
  BULLET::::- share options
  
  BULLET::::- share rights
  
  BULLET::::- Employee stock purchase plans
  
  BULLET::::- contractual rights to purchase shares
  
  BULLET::::- contingent issuance contracts or agreement
  
  Section::::See also.
  
  BULLET::::- Accretion/dilution analysis
  
  BULLET::::- Dilutive security
  
  BULLET::::- P/E ratio
  
  BULLET::::- Whisper number
  
  Section::::External links.
  
  BULLET::::- European banks’ earnings announcements, video
   BULLET::::- Shares outstanding are those that are authorized by the government, issued by the company, and held by third parties. The number of shares outstanding times the share price gives the market capitalization of the company, which if the trading price held constant would be sufficient to purchase the company.
  
  BULLET::::- Treasury shares are authorized, issued, and held by the company itself.
  
  BULLET::::- Issued shares is the sum of shares outstanding and treasury shares.
  
  BULLET::::- Shares authorized include both issued (by the board of directors or shareholders) and unissued but authorized by the company's constitutional documents.
  
  Section::::Tax treatment.
   BULLET::::- "Private Stock" label – No age statement (NAS) and bottled at 50.5% abv (101 U.S. proof).
  
  Section::::Awards and reviews.
  
  Johnny Drum Private Stock was awarded a "double gold medal" at the 2010 San Francisco World Spirits Competition, and the green and black labels each received a silver medal at the 2012 event. However, that was a different Private Stock than is being sold in 2016. The current Private Stock has no age statement (NAS), whereas the one that won the "double gold medal" back in 2010 had a 15 year age statement.
   Regarding the items in equity section, the following disclosures are required:
  
  BULLET::::1. Numbers of shares authorized, issued and fully paid, and issued but not fully paid
  
  BULLET::::2. Par value of shares
  
  BULLET::::3. Reconciliation of shares outstanding at the beginning and the end of the period
  
  BULLET::::4. Description of rights, preferences, and restrictions of shares
  
  BULLET::::5. Treasury shares, including shares held by subsidiaries and associates
  
  BULLET::::6. Shares reserved for issuance under options and contracts
  
  BULLET::::7. A description of the nature and purpose of each reserve within owners' equity
  
  Section::::Substantiation.
   Level 1 shares can only be traded on the OTC market and the company has minimal reporting requirements with the U.S. Securities and Exchange Commission (SEC). The company is not required to issue quarterly or annual reports in compliance with U.S. GAAP. However, the company must have a security listed on one or more stock exchanges in a foreign jurisdiction and must publish in English on its website its annual report in the form required by the laws of the country of incorporation, organization, or domicile.
   The Court has wide discretion over the contribution that it can require. Traditionally this has been compensatory, rather than punitive. The starting point for assessing the appropriate amount was the difference between the net assets of the company at the date that the directors should not have traded beyond, and the net assets at the date of liquidation.
   REITS, although covered by MarketGrader, are excluded from B400, as are companies that have not reported quarterly or annual results within the past six months. Each stock selected for the B400 must have a minimum three-month average daily dollar-trading volume of $2 million. The minimum float-adjusted capitalization of a component is $250 million, and at least 25% of the components must have a market value of at least $3 billion.
   The initial share price is determined on the trade date. The final valuation of the shares is based on the closing price of the reference shares determined four days prior to maturity. If the investor is delivered physical shares, their value will be less than the initial investment.
  
  Section::::Liquidity.
  
  These are generally created as a buy and hold investment, but issuers typically provide liquidity in the secondary market. The secondary market price may not immediately reflect changes in the underlying security. Liquidations prior to maturity may be less than the initial principal amount invested.
  
  Section::::Liquidity.:Trading.
   BULLET::::- The disposing company would be entitled to at least 10% of the other company's assets on a liquidation.
  
  BULLET::::- The disposing company must be a trading company or a member of a trading group. This requirement does not apply for disposals on or after 1 April 2017
  
  BULLET::::- The target company (or the company whose shares are being disposed of) must be a trading company or the holding company of a trading group.
  
  The last two conditions must be met:
  
  BULLET::::- throughout the period:
   Tier 1 capital, the more important of the two, consists largely of shareholders' equity and disclosed reserves. This is the amount paid up to originally purchase the stock (or shares) of the Bank (not the amount those shares are currently trading for on the stock exchange), retained profits subtracting accumulated losses, and other qualifiable Tier 1 capital securities (see below). In simple terms, if the original stockholders contributed $100 to buy their stock and the Bank has made $20 in retained earnings each year since, paid out no dividends, had no other forms of capital and made no losses, after 10 years the Bank's tier one capital would be $300. Shareholders equity and retained earnings are now commonly referred to as "Core" Tier 1 capital, whereas Tier 1 is core Tier 1 together with other qualifying Tier 1 capital securities.
   BULLET::::3. The invalidation is limited to dispositions of property: it does not invalidate a company's assumption of liabilities, and it has no impact on the company's use, consumption or exhaustion of its assets.
  
  BULLET::::4. Presentation of the winding up petition has no impact on the powers of the directors of the company, the authority of the company's agents or the powers of disposition of the company.
   BULLET::::- In relation to credit standing, the ranking of a security refers to where that particular security would stand in a wind up of the issuing company, i.e., its seniority in the company's capital structure. For instance, capital notes are subordinated securities; they would rank behind senior debt in a wind up. In other words, the holders of senior debt would be paid out before subordinated debt holders received any funds.
   Subordinated debt is classed as Lower Tier 2 debt, usually has a maturity of a minimum of 10 years and ranks senior to Tier 1 capital, but subordinate to senior debt in terms of claims on liquidation proceeds. To ensure that the amount of capital outstanding doesn't fall sharply once a Lower Tier 2 issue matures and, for example, not be replaced, the regulator demands that the amount that is qualifiable as Tier 2 capital amortises (i.e. reduces) on a straight line basis from maturity minus 5 years (e.g. a 1bn issue would only count as worth 800m in calculating capital 4 years before maturity). The remainder qualifies as senior issuance. For this reason many Lower Tier 2 instruments were issued as 10 year non-call 5 year issues (i.e. final maturity after 10 years but callable after 5 years). If not called, issue has a large step - similar to Tier 1 - thereby making the call more likely.
   Dividend history and intent to pay or not pay dividends must be discussed. Securities authorized for issuance under equity compensation plans must be revealed; this also involves Regulation S-X. A performance graph that shows the "yearly percentage change in the registrant's cumulative total shareholder return on a class of common stock" is required. Figures must also be compared with one or more "peer issuer(s) selected in good faith".
  
  Section::::Regulation S-K: Highlights by item.:Securities of the registrant.:Item 202: Description of Registrant's Securities.
   Calculations of diluted EPS under U.S. GAAP are described under Statement No. 128 of the Financial Accounting Standards Board (FAS No. 128). The objective of diluted EPS is to measure the performance of a company over the reporting period taking into account the dilutive effect of potential common stock that could be issued by the company. To compute diluted EPS, both the denominator (outstanding shares) and the numerator (earnings) may need to be adjusted.
  
  "Diluted shares: "
   BULLET::::- The company must have held a "substantial shareholding" in the other company for a continuous period of at least 12 months in the preceding two years. This will be extended to the preceding six years for disposals on or after 1 April 2017. A substantial shareholding means a shareholding in respect of which the following conditions are met:
  
  BULLET::::- The disposing company holds at least 10% of the ordinary share capital of the other company;
  
  BULLET::::- The disposing company is entitled to at least 10% of profits available for distribution; and
   The EPS number that most analysts use is the pro forma EPS. To compute this number, use the net income that excludes any one-time gains or losses and excludes any non-cash expenses like amortization of goodwill. Never exclude non-cash compensation expense as that does impact earnings per share. Then divide this number by the number of fully diluted shares outstanding. Historical EPS figures and forecasts for the next 1–2 years can be found by visiting free financial sites such as Yahoo Finance (enter the ticker and then click on "estimates").
  
  Section::::Fundamental criteria (fair value).:Price to Earnings (P/E).
  
raw_presuppositions: Outstanding shares of a stock have value.
raw_corrections: Outstanding shares of a stock can be sold without any change to the stock price.