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Invest FAQ: Stocks: Outstanding Shares and Float (577 words) |
 | In a nutshell, the outstanding shares (also known as issued shares) are those held by the public but possibly restricted from trading, and the float is the number of shares held by the public and available for trading. |
| At the moment of incorporation, these shares are held in the company treasury (at least that's what people say); the number of outstanding shares and the float are both zero. |
| Because the number of outstanding shares increases, this is known as dilution, since the ownership stake of existing shareholders is diluted by the newly issued shares. |
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