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Weighted average shares = total number of shares remains outstanding during year divided by number of months

For example: during first 6 months total outstanding shares are 100000

on 1st July company issues 100000 more share

Now total shares = 200000

SO weighted average share = (100000 * 12 + 100000 * 6)/12

weighted average shares = 1800000/12 = 150000

OR

weighted average shares = (200000 + 100000) /2 = 150000

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13y ago
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14y ago

Say for example 60,000 shares of stock were outstanding for 3 of 12 months for 2010. For the rest of the year, 9 of 12 months, 84,000 shares of stock were outstanding.

You would multiply 60,000 by (3/12) and 84,000 by (9/12), add them up and that would be your weighted average number of shares.

So 60,000 x (3/12) = 15,000 shares

84,000 x (9/12) = 63,000 shares

Weighted Avg. Num. of Shares = 15,000 + 63,000 = 78,000

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Q: How do you calculate weighted average number of shares?
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