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weighted-average number of shares of stock outstanding

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

Used to calculate the earnings per share of common stock: Earnings available for common stock divided by the weighted-average number of shares of common stock outstanding. The weighted-average number of shares is needed when shares of stock have been issued or repurchased within the period of the earnings.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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