Shares-Outstanding

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 Stock
  

USD 0.048  0.00  0.00%   

There are a set number of shares that are made when a company decides to go public. With that comes different classes and other differing factors, but for this explanation, we are focusing on outstanding shares.

Updated over a year ago
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Shares outstanding are all shares that have not been repurchased by the company and taken out of circulation for the time being. Why might you need to know shares outstanding, the first is if a company is implementing a share buyback program.


Watch out for price decline

Please consider monitoring Goldplay Mining on a daily basis if you are holding a position in it. Goldplay Mining is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Goldplay Mining stock to be traded above the $1 level to remain listed. If Goldplay Mining otc pink sheet price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How does Goldplay utilize its cash?

To perform a cash flow analysis of Goldplay Mining, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Goldplay Mining is receiving and how much cash it distributes out in a given period. The Goldplay Mining cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

When a company takes shares out of circulation, it drives price up in theory because there is less supply and demand has not changed, but that does not always take place in a free market. Shares outstanding also may increase if the company sells more shares to the market giving them more cash to spend as they wish.

If you see shares outstanding increasing, you may want to take a step back and see if there is a reason why it is increasing. It could be all apart of their plan which is fine, but if the company is struggling for cash and keeps selling shares to the market, that could be an indication of greater issues.

The ideal situation would be the company slowly purchases their shares back, increasing the value of the stock and the company becomes dependent upon their own cash flow. Of course each company has their own plan for outstanding shares and you need to fully understand what the company has in mind. Ideally you want to see the company sticking to their game plan and going with the flow. This should not be a huge issue, but it certainly can if the balance of shares begins to swing wildly.

Take a look on the Internet and see how others use shares outstanding in their research of a company. This could also lead into liquidity because smaller companies are not as traded and they may not have as many shares outstanding. All of these can be affected so be sure to take a quick glance and see what is going on. If you get stuck, reach out to an investing community or investing professional as they can help to point you in the right direction. Share count is an interesting factor to take a look at and it may swing your research into a direction you otherwise would have skipped.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Goldplay Mining. Please refer to our Terms of Use for any information regarding our disclosure principles.

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