answersLogoWhite

0

What else can I help you with?

Continue Learning about Math & Arithmetic

What do you mean by number of outstanding shares?

Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!


The number of common shares outstanding can never be greater than the number of shares issued?

True


What is the term for the total number of shares that a corporation may issue under the terms of its charter?

unissued shares


Does dividend increase number of shares outstanding?

No, a dividend increase does not directly increase the number of shares outstanding. Dividends are cash payments made to shareholders from a company's profits, and increasing dividends means that the company is distributing more cash per share. However, if a company opts for a stock dividend instead, which involves issuing additional shares to shareholders, then the number of shares outstanding would increase.


How do you calculate the theoretical ex-rights price?

The theoretical ex-rights price (TERP) is calculated by taking the total value of the existing shares and the new shares being issued, then dividing by the total number of shares after the rights issue. The formula is: [ \text{TERP} = \frac{(N \times P) + (M \times S)}{N + M} ] where ( N ) is the number of existing shares, ( P ) is the price per existing share, ( M ) is the number of new shares, and ( S ) is the subscription price for the new shares. This provides the expected share price once the rights issue is completed.

Related Questions

What represents the largest number of common shares?

Authorized shares


What is the maximum number of shares of stock that a corporation can issue over the life of the charter called?

authorized shares are the maximum number of shares of stock that a corporation can issue.


Difference between authorized capital and paid up capital?

Authorized capital is the maximum amount a company is allowed to collect from public by issuing shares. Paid up capital is the amount of capital which a company has currently issued to the public in the form of shares or the public has provided the money to a company for working. For example: Authorized capital $1000 Paid Up capital $100 Now a company can issue shares of $900 to the public offering and not more than that.


How do you calculate the Earnings per share using the number of shares authorized by company along with the number of shares still held by company?

yes i could


What is difference between authorized stock and issued stock?

Authorized stock has not necessarily been issued. The incorporating state authorizes the corporation to issue a certain number of shares of stock. All shares of a company are authorized... not all are issued.


A company with authorized shares of 10M has 9.5M shares issued and outstanding. Can they issue a convertible note that will convert to 1M shares. Ie- can fully diluted shares exceed the Authorized?

no


What do you mean by number of outstanding shares?

Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!


What is the process for increasing authorized shares for a company?

Increasing authorized shares for a company involves a formal process where the company's board of directors must approve the decision to increase the number of shares that the company is allowed to issue. This typically requires an amendment to the company's articles of incorporation, which must be filed with the appropriate government agency. Shareholders may also need to vote on the proposed increase in authorized shares.


What is a share describe the various types of shares that can be issued by a company?

A share can be defined as an asset that belongs to an individual or a group of people. The various types of shares that can be issued by a company are Authorized and issued shares. Authorized shares are the ones that a company is allowed to issue while issued shares are the shares that are allocated to shareholders.


Why aren't all the authorized shares offered to the general public at the initial stage?

Assuming a company goes public with 100 shares, it has to hold atleast 51 shares to maintain stronghold on the company's management i.e., to own the company. The remaining 49 shares are offered to the public. Out of these a % is allotted to institutional investors (Other companies), a % is allotted to Mutual funds and another % is allotted to foreign investors and High Networth Investors. The remaining usually 10-15% is allotted to the general public.


What is the minimum subscription?

When a company offer shares to the public, they offer many shares, however they set a speific amount to be subsribed by the public in order to issue the shares, otherwise they cannot issue the shares.


How do you calculate shares outstanding for a company?

To calculate shares outstanding for a company, you add up the total number of common shares issued by the company and subtract any treasury shares that the company has bought back. This gives you the total number of shares that are currently held by investors and the public.