Fully diluted shares

Fully diluted shares are the total number of common shares that are available in a company. These shares would be open to trade on the market after all the possible sources of conversion, such as employee stock options and convertible bonds are exercised. The fully diluted shares do not just include the currently issued shares, but also the ones that can be claimed through conversion. This number of shares is needed for the earning per share (EPS) calculations of the company since applying the fully diluted shares increases the share-basis in the calculation while reducing the dollars earned per share of common stock. The fully diluted shares affect the EPS of a company, which is a common metric for assessing relative value and profitability. To know more about fully diluted shares and the other terms for your company, check out our blog or knowledge center here. And if you have not yet started using Eqvista as your cap table application, it’s time to do so. Check out our cap table software here & contact us today!