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.
Usage and Context
Companies use fully diluted shares to show how many shares would exist if all convertible forms were turned into stock. This number is important for understanding a company`s value and how much each share could be worth.
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.
Related Software
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Benefits
Knowing the number of fully diluted shares helps businesses and investors. It shows the total possible shares and helps everyone understand a company`s real value.
Conclusion
Fully diluted shares give a complete view of a company`s stock. They help people see how many shares there could be and what that means for the company`s value and their part in it.
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