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.
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Common stocks are a companyโs number of shares, and are included in the balance sheet.
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Common stock formula is represented as follows,
Number of Outstanding Shares = Number of Issued Shares โ Treasury Stocks
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Letโs take an arbitrary example of firm C. Find out how to calculate the companyโs 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 ๐๐จ๐ฆ๐ฆ๐จ๐ง ๐๐ญ๐จ๐๐ค ๐ ๐จ๐ซ๐ฆ๐ฎ๐ฅ๐, you can go to this ๐ฅ๐ข๐ง๐ค ๐ก๐๐ซ๐:- https://www.wallstreetmojo.com/common-stock-formula/
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