Definition:
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.
Shares of company stock that have been retired or repurchased by the company are not considered to be outstanding.
The number of outstanding shares is used in computation of dividends and also in determining the market capitalization of the corporation.
