**What is Weight Average Shares Outstanding?**

It’s mean average shares company outstanding within certain period.

**How to Calculate Weight Average Shares Outstanding?**

It’s a little bit difficult to express in a single formula. however i will give an example to demonstrate how to calculate it.

**Case Study 1**

**Q :** “Company A” has 10 million shares outstanding at Janunary 2007 and issued 5 million shares on June 30, 2007. What is the “company A” weight average shares outstanding at year 2007?

**A :** Company A has 12.5 million weight average shares outstanding at year 2007.

Here is the formula.

Company A

1) 10 million * (January to June (6 months) / (12 months)) = average is 5 million shares

2) (10+5)15 million * (June to December (6 months) / (12 months)) = average is 7.5 million shares

**Total “company A” weight average shares outstanding at year 2007 is 5 million shares + 7.5 million shares = 12.5 million shares.**

**Case Study 2**

**Q :** “Company B” has 100 shares outstanding at January 2007 and issued 50 shares on June 30, 100 on September 30. What is the “company B” weight average shares outstanding at year 2007?

**A :** Company B has 150 weight average shares outstanding at year 2007.

Here is the formula.

Company B

1) 100 * (January to June (6 months) / (12 months)) = average is 50 shares

2) (100+50) 150 * (June to September (3 months) / (12 months)) = average is 37.5 shares

3) (150+100) 250 * (September to December(3 months) / (12 months)) = average is 62.5 shares

**Total “company B” weight average shares outstanding at year 2007 is 50 shares + 37.5 shares + 62.5 shares = 150 shares.**

erm,in your 2nd case study , why (100+30)130 ? where does that 30 came from >?

hi sorry, this is my fault, it’s (100+50)150. Thanks for it