Fully Diluted Shares Outstanding
Fully diluted shares are the total outstanding shares a company would have after all dilutive securities, such as convertible preferred stock and warrants, have been assumed as converted or exercised.
Share:
Fully diluted shares= total outstanding shares + ESC
Where:
Total outstanding shares = equity shares authorised and issued by the company
ESC = equity shares after conversion of convertible securities
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.
