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It is discrete because if it did have decimals, lots of money would be lost. For example, if you have a stock at $20.36, and you buy 100.2 shares, the value of those shares is $2040.6828. If over a period of time, the stock goes up $2, it it will be at $22.36. This makes the value of shares $2240.472. Basically, you have earned $199.7892. But now what do you do with the .7892? If you decide to round up to .79, but a thousand people are selling their 100.2 shares, then they are owed a total of $.8. If this happens every day over a year, they are owed $29.2. If every stock did that then the extra amount owed due to the rounding would be massive.
Looking the other way, if you round down every time to .78, then each person holding 100.2 shares will lose $.0092. Again if there are 1000 people, collectively they will lose $9.2. And over a year, that is $3358 that just disappears. Because you can neither round up or down (because it will result in disaster) the amount of shares held by the shareholders must be discrete.
What else can I help you with?
Are forfeited shares included while calculating weighted average number of outstanding shares?
No, forfeited shares are not included when calculating the weighted average number of outstanding shares. Outstanding shares refer only to shares that are currently held by shareholders and are actively trading. Since forfeited shares are no longer held by shareholders, they do not impact the calculation of the weighted average.
True or false treasury stock causes outstanding shares to exceed issued shares?
False. Treasury stock refers to shares that a company has repurchased and are held in the company's treasury, which means they are not considered outstanding shares. As a result, outstanding shares are always equal to or less than issued shares, since outstanding shares exclude any treasury stock.
What is the average time a share of stock is held?
It depends, but the average is usually between 20 to 30 seconds.
What percentage of wealth is held by women?
It doesn't matter what percentage of wealth women hold, because they hold 100% of what really matters.
Functions of data warehouse?
A data warehouse functions as a repository for all the data held by an organisation. The main functions are to reduce cost of data storage, facilitate data mining, and facilitate ability to back up data at an organisational level.
What happens in a publicly held corporation?
a large number of stockholders can buy an sell stock
Owned by a limited number of stockholders?
A close corporation is owned by a relatively small number of stockholders. Also called a privately held company, stock is not offered for sale to the general public.
Who is Microsoft owner?
Microsoft is a publicly held company so the stockholders own. Some people, like Bill Gates, own millions of shares of the company.
What do you mean by number of outstanding shares?
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!
What term refers to type of business that is owned by stockholders?
The term that refers to a type of business owned by stockholders is a "corporation." In a corporation, ownership is divided into shares of stock, and stockholders have the right to vote on important company matters and receive dividends based on their shareholdings. Corporations can be publicly traded on stock exchanges or privately held.
Are forfeited shares included while calculating weighted average number of outstanding shares?
No, forfeited shares are not included when calculating the weighted average number of outstanding shares. Outstanding shares refer only to shares that are currently held by shareholders and are actively trading. Since forfeited shares are no longer held by shareholders, they do not impact the calculation of the weighted average.
How do you calculate the Earnings per share using the number of shares authorized by company along with the number of shares still held by company?
yes i could
How do you determine the number of outstanding shares for a company?
To determine the number of outstanding shares for a company, you can look at the company's financial statements or check with the company's investor relations department. The number of outstanding shares represents the total number of shares of stock that have been issued by the company and are held by investors.
How can one determine the number of outstanding shares for a company?
To determine the number of outstanding shares for a company, you can look at the company's financial statements or check with the company's investor relations department. The number of outstanding shares represents the total number of shares of stock that have been issued by the company and are held by investors.
What do you mean by bonus share?
Free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns. While this stock action increases the number of shares owned, it does not increase the total value. This is due to the fact that since the total number of shares increases, the ratio of number of shares held to number ofshares outstanding remains constant.
How do you calculate shares outstanding for a company?
To calculate shares outstanding for a company, you add up the total number of common shares issued by the company and subtract any treasury shares that the company has bought back. This gives you the total number of shares that are currently held by investors and the public.
What is Difference between issued and outstanding shares?
Issued Shares: The number of shares that has ever been sold to and held by the shareholders of a company. Includes stock that has been repurchased by the company. Does NOT include shares that have been retired.Outstanding Shares: Stock currently held by investors. Does NOT include stock that has been repurchased by the company..If either no shares have ever been repurchased or if all repurchased shares have been retired then Outstanding shares = Issued Shares.
