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Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!
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Types of sharesA company may have many different types of shares that come with different conditions and rights.There are four main types of shares:Ordinary shares are standard shares with no special rights or restrictions. They have the potential to give the highest financial gains, but also have the highest risk. Ordinary shareholders are the last to be paid if the company is wound up.Preference shares typically carry a right that gives the holder preferential treatment when annual dividends are distributed to shareholders. Shares in this category have a fixed value, which means that a shareholder would not benefit from an increase in the business' profits. However, usually they have rights to their dividend ahead of ordinary shareholders if the business is in trouble. Also, where a business is wound up, they are likely to be repaid the par or nominal value of shares ahead of ordinary shareholders.Cumulative preference shares give holders the right that, if a dividend cannot be paid one year, it will be carried forward to successive years. Dividends on cumulative preference shares must be paid, despite the earning levels of the business.Redeemable shares come with an agreement that the company can buy them back at a future date - this can be at a fixed date or at the choice of the business. A company cannot issue only redeemable shares.
The basic definition says "The stock price is calculated by subtracting the dividends of a certain stock from the company's net income, and then dividing that number by the number of outstanding shares ." but there are other factors like demand and supply of stock in market which affect stock price.
Dividend Yield on a share is usually the % of the investment amount that is received as dividend every year per share. Each share is worth Rs. 30 and the dividend declared is Rs. 1.50 per share. Hence dividend yield = (1.5/30) * 100 = 5%