The formula for calculating the shares outstanding consists of subtracting the shares repurchased from the total shares issued to date. The outstanding shares formula is represented as issued shares minus shares held in the company's treasury or treasury stock.A reporting entity should recognize treasury stock based on the amount paid to repurchase its shares. One or more irrevocable proxies cumulatively transferred voting rights to more than 50 percent of the outstanding voting shares to one person or one entity. In this video, we will study the definition, types of Outstanding Shares and its impact on investors. What are Outstanding Shares(stocks)? The accounting equation states that a company's total assets are equal to the sum of its liabilities and its shareholders' equity. The number of shares outstanding can be computed as either basic or fully diluted. Basic EPS uses only outstanding common shares in the calculation. Outstanding shares of stock (including nonvoting stock).