What is meaning of outstanding shares?

Others 952 views 5 replies

hi friend in new format of accounts statements we have to give details of share outstanding at the end of financial year....is it total of shares held by shareholders?

Replies (5)

Yes, all the shares issued by the company which is reflecting in the B/S.

is it covers issued but not allotted yet consideration shown as application money

No, it doesn't, reason being - Shares, till it is allotted should not be counted as issued. Receipt of application money is no guarantee of allotment, and it just signifies prospective shareholders willingness to subscribe to Co's share. Such shares shld be considered post allottment only.

 

The outstanding shares of a corporation are the shares of stock in the corporation that are currently owned by investors and which are available for trade. Shares held by company officers and insiders, as well as shares held by the general public, are considered to be outstanding.

 

Hope it helps...

thanks for confirming Mr. Chandan

smiley


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