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Common Stock Formula (Example) | How to Calculate Common Stock? [Video]

Common Stock Formula (Example) | How to Calculate Common Stock?

In this video on Common Stock Formula, here we discuss how to calculate Common Stock (number of outstanding shares) with the practical examples and downloadable excel sheet.

๐–๐ก๐š๐ญ ๐ข๐ฌ ๐‚๐จ๐ฆ๐ฆ๐จ๐ง ๐’๐ญ๐จ๐œ๐ค ๐…๐จ๐ซ๐ฆ๐ฎ๐ฅ๐š?
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”

Common stocks are a companyโ€™s number of shares, and are included in the balance sheet.

๐‚๐จ๐ฆ๐ฆ๐จ๐ง ๐’๐ญ๐จ๐œ๐ค ๐…๐จ๐ซ๐ฆ๐ฎ๐ฅ๐š
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”-

Common stock formula is represented as follows,

Number of Outstanding Shares = Number of Issued Shares โ€“ Treasury Stocks

๐„๐ฑ๐š๐ฆ๐ฉ๐ฅ๐ž ๐จ๐Ÿ ๐‚๐จ๐ฆ๐ฆ๐จ๐ง ๐’๐ญ๐จ๐œ๐ค ๐…๐จ๐ซ๐ฆ๐ฎ๐ฅ๐š
โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”โ€”-

Letโ€™s take an arbitrary example of firm C. Find out how to calculate the companyโ€™s number of outstanding shares. We will now also try to understand what approved shares released shares, and stocks of treasuries mean. Suppose 4000 shares are the number of authorized shares for a company.

Solution

Given

Authorised Shares โ€“ 4000
Shares Issued โ€“ 3000
Treasury Shares โ€“ 700

By using above formula we get,

Number of outstanding shares = 3000 -700

= 2300

C Number of outstanding shares = 2300

To know more about the ๐‚๐จ๐ฆ๐ฆ๐จ๐ง ๐’๐ญ๐จ๐œ๐ค ๐…๐จ๐ซ๐ฆ๐ฎ๐ฅ๐š, you can go to this ๐ฅ๐ข๐ง๐ค ๐ก๐ž๐ซ๐ž:- https://www.wallstreetmojo.com/common-stock-formula/

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