- The term "outstanding shares," according to Investopedia, refers to the total number of shares that a company has issued for public sale. This number includes all shares held by the public and those for which sale is restricted and that need special permission for purchase.
- A company's outstanding shares are recorded on a company's balance sheet under the heading "Capital Stock." Numbers of outstanding shares are used to calculate figures such as market capitalization and earnings per share, according to Investopedia.
- Cardinal Money Management explains that shares repurchased by a company after a public sale of shares are not considered outstanding. The number of outstanding shares includes those owned by employees of a company.
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