Definition of Outstanding Stock

Outstanding Stock is The total amount of stock which has been sold to the investing public and which remains in the hands of the investing public.

Applying "Outstanding Stock" to Securities Exams:

When a companies sells stock to the investing public that stock becomes part of the public float and is known as outstanding stock. If the company decides to repurchase it shares in an effort to fund an employee stock purchase plan or to regain control of the company that stock will become known as treasury stock and will reduce the amount of outstanding stock.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....