# shares issued and outstanding

#### straightmarble02

Although I answered all the questions, I have my own another question regarding the question 3.

1,911 million shares are the number of shares that have been issued as of the 2011 financial year end, and it's written as "shares issued and outstanding". If I look at the common stock on the balance sheet, 1,991 million and 2,204 million shares were issued and outstanding, respectively in 2011 and in 2010.

Not all issued shares are outstanding shares. So if there were some treasury shares on the balance sheet, "shares issued and outstanding" in each year would be less than the number of ordinary or common stocks the company has issued in the light of the below formula because of the issued treasury shares. Am I correct on my assumption?

Issued shares = Treasury shares + outstanding shares

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Selected financial statements from a recent annual report of Hewlett-Packard Company (HP) follow. Use these statements to answer the following questions.
Required:
1. The company’s financial year ends on what date? Oct 31

2. What amounts did HP report for the following items for the financial year 2011?
a. Total net revenues \$127,245
b. Total operating expenses \$117,568
c. Net income (earnings) \$7,074
d. Total assets \$129,517
e. Total shareholders’ equity \$39,004

3. How many ordinary shares or shares of common stock did the company have issued as of the 2011 financial year end? 1,991 million shares

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#### Triest123

VIP Member
Treasury shares refer to those issued shares which are repurchased (or bought back)
by the company from the investors.

The company cannot issue treasury shares.

#### straightmarble02

Of course, I know treasury shares refer to those repurchased and not retired.

But my question is: If there were some treasury shares on the balance sheet, would "shares issued and outstanding" in each year be less than the number of ordinary or common stocks the company has issued?

#### Triest123

VIP Member
Of course, I know treasury shares refer to those repurchased and not retired.

But my question is: If there were some treasury shares on the balance sheet, would "shares issued and outstanding" in each year be less than the number of ordinary or common stocks the company has issued?
=> Yes. However, the total shares issued and outstanding shown in the Balance sheet would not be reduced as the treasury shares is shown separately ( a negative figure) under 'Equity' unless the company cancel the treasury shares (i.e. the company
do not intend to sell these shares to the investors )

#### straightmarble02

=> Yes. However, the total shares issued and outstanding shown in the Balance sheet would not be reduced as the treasury shares is shown separately ( a negative figure) under 'Equity' unless the company cancel the treasury shares (i.e. the company
do not intend to sell these shares to the investors )
But doesn't outstanding shares(shares issued and outstanding) become 50 from 100 by the formula in the following cases?

Issued shares 100 = Treasury shares 0 + outstanding shares

Issued shares 100 = Treasury shares 50 + outstanding shares