Definition
Fully Diluted Shares are the total number of shares that would be outstanding if all possible sources of conversion, such as stock options and convertible bonds, were exercised.
Frequently asked questions
Are diluted shares options outstanding or exercisable?
Diluted shares include options that can be turned into stock, not just those already counted as outstanding shares.
Does fully diluted include convertible notes?
Yes, fully diluted counts include convertible notes. These are loans that can be changed into shares of stock.
Why are shares fully diluted?
Shares are fully diluted to give a true picture of a company`s stock. It helps investors see the potential future share count and value.