Shares : Certificates or book entries representing ownership in a corporation or similar entity.
Par/Face Value :
- Usually important for debt/bonds, because interest is calculated on based of this face value
- Decided when releasing the stocks
- Par value is usually very low in stocks, because company doesn’t want to have liability if stock prices go down below the par value
- It has no connection to the market value of the share of stock
Outstanding stocks :
- Stocks held by shareholders
- Publicly traded companies are obligated to report the number of issued and outstanding shares,
Treasury stock :
- Treasury stock (treasury shares) are the portion of shares that a company keeps in its own treasury
- Treasury stock may have come from a repurchase or buyback from shareholders, or it may have never been issued to the public in the first place
- Treasury stock not considered when calculating dividends or earnings per share.
- These are kept in the company’s treasury to be used to create extra cash if it is needed. Another reason may be to keep a controlling interest within the treasury to help ward off hostile takeovers.
Share capital : It consists of all funds raised by a company in exchange for shares of their stocks.
Outstanding share capital : Share capital less the par value of shares that are held as the company’s treasury stock.
Earnings per share(EPS) :
- A company’s profit divided by its number of common outstanding shares. If a company earning ₹200 in one year had 200 common shares of stock outstanding, its EPS would be ₹1 per share.
- The one-year (historical or trailing) EPS growth rate is calculated as the percentage change in earnings per share(EPS).
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