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Glossary · PSX term

Shares outstanding.

Shares outstanding is the total number of a company's shares currently held by all investors.

Definition

This figure includes shares held by founders, institutions, and the public, and is used to calculate market capitalisation and earnings per share. It changes with bonus issues, right issues, buybacks, and conversions.

Worked example

A company with 1 billion shares outstanding at Rs. 100 has a market cap of Rs. 100 billion.

Related on PSX Clarity

Market capitalization

Earnings per share

Treasury shares

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Small-cap stock

A small-cap is a company with a relatively small market capitalisation and usually lower trading liquidity.

Special dividend

A special dividend is a one-off payout outside the company's normal dividend schedule.

A stock dividend pays shareholders in extra shares instead of cash.

A share split divides each share into more shares with a lower face value, without changing total value.

A buyback is when a company repurchases its own shares from the market, reducing shares outstanding.

Strike price (IPO)

In an IPO, the strike price is the final price per share set from the book-building bids.

Secondary offering

A secondary offering is a sale of additional shares by a company or large holder after the IPO.