The term 'outstanding shares' refers to the total number of shares of a company's stock that are currently held by shareholders. This number can fluctuate depending on various factors, including the issuance of new shares through an initial public offering (IPO). Once a company goes public, the number of outstanding shares will increase, as new investors purchase shares in the company. This is an important metric to consider when analyzing a company's financial health and potential for growth. By understanding the concept of outstanding shares, one can gain a deeper understanding of the stock market and make informed investment decisions.
