Listen to a Business English Dialogue about Shares outstanding
Andrew: Hi Scarlett, do you know what shares outstanding are?
Scarlett: No, what are they?
Andrew: Shares outstanding refers to the total number of shares of a company’s stock that are currently owned by all shareholders, including institutional investors, insiders, and the public.
Scarlett: Oh, so it’s like the total number of shares available for trading?
Andrew: Exactly. Shares outstanding can fluctuate over time due to factors such as stock issuance, buybacks, and changes in ownership.
Scarlett: I see. What significance do shares outstanding have for investors?
Andrew: Shares outstanding is an important metric for investors as it affects the company’s market capitalization and earnings per share calculations.
Scarlett: Thanks for explaining, Andrew. So, how can investors use shares outstanding in their investment analysis?
Andrew: Investors often use shares outstanding to assess a company’s size, liquidity, and ownership structure, which can provide insights into its financial health and growth potential.
Scarlett: That makes sense. Shares outstanding seem like a fundamental aspect of understanding a company’s stock.
Andrew: Absolutely, Scarlett. It’s a key component of fundamental analysis and helps investors make informed decisions about their investments.