Business Definition for: outstanding capital stock
outstanding capital stock
shares in the hands of stockholders.Outstanding shares are issued shares minus treasury shares. Dividends are based on outstanding shares.
See also
treasury stock
outstanding capital stock
shares in the hands of stockholders. Outstanding shares are issued shares minus treasury shares. Dividends are based on outstanding shares.
See also
treasury stock
Related Terms:
issued shares that have been reacquired by the company. Treasury shares may be resold or cancelled. Dividends are not paid on treasury shares nor are voting fights associated with them. The two acceptable methods of accounting for treasury stock are the cost method and par value method. Under the cost method, treasury stock is shown at thecost to reacquire the shares. Under the par value method, treasury stock is recorded at the par value of the reacquired stock. Treasury stock is shown as a deduction in arriving at stockholders' equity. Under either method, there is an appropriation of retained earnings equal to the cost of the treasury stock held.
issued shares that have been reacquired by the company. Treasury shares may be resold or cancelled. Dividends are not paid on treasury shares nor are voting fights associated with them. The two acceptable methods of accounting for treasury stock are the cost method and par value method. Under the cost method, treasury stock is shown at thecost to reacquire the shares. Under the par value method, treasury stock is recorded at the par value of the reacquired stock. Treasury stock is shown as a deduction in arriving at stockholders' equity. Under either method, there is an appropriation of retained earnings equal to the cost of the treasury stock held.
Referring Terms:
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
