Facebook IPO happened recently. Based on “basic shares outstanding” investors thought they were paying a total market cap of # shares * shares outstanding. Little did they know actual sh
ares were 22% higher. But if the following included shares rose 22%
- stock options
- restricted stock
- shares issued for instagram takeover
Ditto Zinga.
Sirius XM has mkt cap of $9.7billion with 3.8b shares outstanding. Add Liberty Media stake, the # of shares jumps by 2.6 billion!!! Up by 66%. Add options restricted stock and warrants the number of shares jump by 80%. WATCH OUT BELOW.
Indian company Sify Technologies shares jump from 53 million to 178 million. The wall street J notified Nasdaq and promptly stock fell 63%.
So know how many shares actually outstanding - not just basic shares that fin sites report.
Source WSJ Sept 4 2012