How are the number of shares a company has determined?

Submitted by Craig Strzelecki on 4 April, 2006 - 00:22

The number of shares is determined by the number of stocks issued at IPO

How are the number of shares a company has determined?

Bill Gates is said to have a billion shares of Microsoft stock...of course since he owns the company and at roughly $25 a share he is a billionaire. But this is only because someone has detemined that Microsoft has over a billion shares. How do they get that number?

The number of shares is determined by the number of stocks issued at IPO and any other further offerings after the IPO depending on the companys' needs.

Shares list on a stock exchange so they can raise capital, capital they can use in growing that company.

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