4 ms·
In all seriousness, how would you go about calculating FDS? I assume the way to handle that would to have a constant set-aside of the company stock that is use
by angersock 10y ago
In all seriousness, how would you go about calculating FDS?
I assume the way to handle that would to have a constant set-aside of the company stock that is used for employees that is never diluted, but I'm not sure that that is the case.
- mifreewil 10y agoThe number of fully-diluted shares is not a constant over the lifetime of a company. It can be increased or decreased at the will of the board of a company. Knowing this number does not mean that more shares will not be issued. Typically, companies will give you the number of shares outstanding, which is misleading and does not include any unexercised options. Fully-diluted shares is the best number to use when calculating outcomes, as it assumes that all existing convertible notes, preferred stock, and options will be converted into shares at some point in the future.