Shares Outstanding = Issued & Paid-up Shares?

January 13, 2018

Q & A › Shares Outstanding = Issued & Paid-up Shares?
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stephen asked 6 years ago

Hi Peter,
Is the shares outstanding same meaning as the issued & paid-up shares (from ShareInvestor)?
So the company book value = shareholders’ equity / shares outstanding?
And the current markat cap. = current share price * shares outstanding?
I am bit confused on this.

1 Answers
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Peter Lim Staff answered 6 years ago

Shares Outstanding = Shares Issued less Treasury Shares.
Company’s Book Value = Shareholder’s Equity. Both are the same. 
When you take Shareholder’s equity (or Book Value) and divide by shares outstanding, you get Shareholder’s Equity (or Book Value) per share.
Yes, market cap = current share price (how much people are paying for 1 piece of “pizza”) * shares outstanding (the pizza is sliced into how many pieces) to get how much is the entire “pizza”.