Fully-Diluted

Term Main definition
Fully-Diluted

The number of shares of capital stock (typically expressed as "outstanding shares") representing the total current and potential ownership of a company, including all issued shares of capital stock, the conversion of all convertible securities, the exchange of all exchangeable securities, and the exercise of all options and warrants. This is an important (i) methodology for calculating any per share ratios (where the denominator is the fully diluted shares); (ii) entry/line item in the Capitalization Table; and (iii) consideration in valuation and option pool discussions (and the negotiation of anti-dilution, incentive plan and other provisions).