Shares outstanding are all the shares of a corporation or financial asset that have been authorized, issued and purchased by investors and are held by them. They have rights and represent ownership in the corporation by the person that holds the shares. They are distinguished from treasury shares, which are shares held by the corporation itself and have no exercisable rights. Shares outstanding plus treasury shares together amount to the number of issued shares.
Shares outstanding can be calculated as either basic or fully diluted. The basic count is the current number of shares. Dividend distributions and voting in the general meeting of shareholders are calculated according to this number. The fully diluted shares outstanding count, on the other hand, includes diluting securities, such as warrants, capital notes or convertibles. If the company has any diluting securities, this indicates the potential future increased number of shares outstanding.
Finding the number of shares outstanding
The number of outstanding shares may change due to changes in the number of issued shares as well as the change in treasury shares. Both can occur at any time of the year. There are several useful public sources to find the number of shares outstanding of a given corporation.
Public traded companies investors relation
The financial reporting obligation of the public traded company also ensures the publication of issued and outstanding shares. The reports are usually available in the investors relations section of the companies web site. Web directories are supporting direct access to company web sites. Public traded companies bundles the reports normally in the investor’s relation section, e.g. Deutsche Bank AG, Eni S.p.a., Anheuser Busch InBev SA, EDP – Energias do Brasil SA or Accor SA.
Authorized information service
In many countries there is an information service authorized or provided by the local financial authority which gives access to the companies financial reporting. In the United States the number of shares outstanding may be obtained from quarterly filings with the U.S. Securities and Exchange Commission. Quarterly filings are accessible using the US EDGAR. In Germany those figures are available using the German company register, the central platform for storage of company data. In the Netherlands the Netherlands Authority for the Financial Markets (AFM) provides on its web site a register of issued capital. In Italy, the Commissione Nazionale per le Società e la Borsa (CONSOB) provides on its web site a register of issuers with latest total shares.
Local stock exchanges
Since outstanding shares are an essential detail of public traded companies the number can be found on the local stock exchange web sites. Beyond stock charts and lasted prices they in almost all cases also provides the companies number of outstanding shares. E.g. the Brazilian BM&FBOVESPA,the Swiss SIX, the Borsa Italiana or the Tel Aviv Stock Exchange (where shares outstanding are termed “Capital Listed for Trading”).
JADI OUTSTANDING SHARE ITU ADALAH SEMUA SAHAM YG DIMILIKI OLEH COMPANY…………….BAIK BASIC SHARES ( 1-3) DAN DILUTED SHARES(4)
1. TERMASUK SEMUA SAHAM YG AKAN DIKELUARKAN –> ISSUED SHARE
2. TERMASUK SEMUA SAHAM YG SUDAH DI BELI OLEH INVESTOR –> SHAREHOLDER
3. TERMASUK SEMUA SAHAM AUTHORIZED -> SAHAM YG DIMLIKI MANAGEMENT COMPANY
4. TERMASUK SEMUA SAHAM DILUTED –> SAHAM YG DIMLIKI MANAGEMENT COMPANY YG BERNAMA WARRANTS, COMPANY NOTES DAN CONVERTIBLES.
BILA SAJA SEBUAH COMPANY MEMILIKI DILUTED SHARE ( 4) MAKA POTENTSI AKAN PENINGKATAN JUMLAH OUTSTANDING SHARE COMPANY TSB DI MASA DEPAN AKAN SANGAT MENINGKAT. DENGAN KATA LAIN INI COMPANY YG MEMILIKI DILUTED SHARES ADALAH COMPANY YG PUNYA MASA DEPAN YG BAIK UTK DIJADIKAN TARGET INVESTASI …..ANDA…
By Aaron Levitt on October 11, 2013
With popular social media website Twitter announcing that it will go public via an IPO later this year, the market has been abuzz with private equity and start-up companies. And there’s good reason. For early investors, a successful start-up can be worth some big coin once it hits the big time. Meanwhile, an improving economy has created a surge in buy-out and M&A activity. All leading to massive profits for those institutional private equity players that dabble in these markets.
If you’re a pension fund or other huge accredited investor, getting into this world of private equity is actually pretty easy. But what about us retail investors? Is it possible to gain from all of this activity?
The answer is a resounding yes. Luckily, for retail investors accessing this world of private equity and venture capital has never been easier for portfolios.
Big Gains For Investors
The pending Twitter IPO has renewed the general public’s obsession with start-up companies. That’s because these start-ups can turn early investors into millionaires overnight. According to investment consultant Cambridge Associates‘ two main indexes of PE returns, both private equity investors in the U.S. and those abroad have averaged nearly 13.6% in annual returns over the last 20 years. Venture capitalists- or those who just provide seed money to start-up companies- have done even better by realizing nearly 30% returns in that time.
Straight stock investors haven’t been so luckily. During the same time period, the broadSPDR S&P 500 (NYSE:SPY) only managed to produce 8.53% in annual returns.
There’s plenty of reasons to think that the party will continue going for some time. Innovation in the technology and healthcare space continues to grow rapidly, while private equity buy-outs continue to reach a fervor pace. A prime example, has been computer maker Dell’s (NASDAQ:DELL) recent $24.4 billion buy-out. All in all, CEO of buyout firmApollo Global Management (NYSE:APO) Leon Black estimates that PE investors should see low- to mid-teen returns going forward.
Given the potential for higher returns, regular retail investors do have some options for playing these markets.
Take A Look At Business Development Companies
The first place investors should look is towards business development companies (BDCs). These firms invest in or lend to small- to midsized companies and provide managerial assistance in hopes of profiting as these businesses grow. They are basically, the closest thing to a publicly traded private equity or venture capital as regular retail investors can get. Several BDCs- like Hercules Technology Growth Capital (NASDAQ:HTGC) and Ares Capital Corporation (NASDAQ:ARCC) –have been quite successful at spotting the “next big thing” in the tech world.
Secondly, due to their tax structure, BDCs are similar to real estate investment trusts(REITS) in that they are required to payout 90% of earnings as dividends back to shareholders. That results in some hefty yields- often in the 7 to 12% range.
The Market Vectors BDC Income ETF (NASDAQ:BIZD) could be one of the best ways to add the sector to a portfolio as it offers investors a broad play. The new ETF tracks 27 different BDCs and offers a hefty 7.72% dividend yield. Since inception back in February, BIZD has returned about 5%. Expenses are high at 8.33%. But much of that stems from acquired fund fees and expenses from the underlying BDCs themselves and not the fund.
Public PE Firms
The other choice for investors could be betting on the firms that are doing the buy-outs and venture capital themselves. While it won’t provide the same level of direct participation, the fees and earnings from buy-out funds and PE deals do trickle back into these firm’s pockets. Several major players like Blackstone (NYSE:BX) and Kohlberg Kravis Roberts & Co (NYSE:KKR) are now publicly traded and offer juicy yields and capital appreciation for their shares. The PowerShares Global Listed Private Equity (NYSE:PSP) can be used as a broad global play on these firms as well as provide some exposure to BDCs. The ETF yields 10.46%.
The Bottom Line
Recent hot IPOs like Potbelly (NASDAQ:PBPB) and Twitter has many regular investors salivating at the chance to participate in start-ups and private equity. With returns in the 13% to 30% range, who wouldn’t be? Luckily, the world of private equity can be achieved in a regular portfolio. For investors, funds like the ProShares Global Listed Private Equity ETF (NYSE: PEX) make it all too easy.
Disclosure – At the time of writing, the author did not own shares of any company mentioned in this article.