Outstanding shares are the company’s stock that have been authorized and issued, representing ownership of the company by investors or institutions holding those shares. Fully diluted shares include all those equities plus additional shares if all convertible securities of a company were exercised.
Similarly, you may ask, what are diluted shares outstanding?
Fully diluted shares outstanding is the total number of shares a company would theoretically have if all dilutive securities were exercised and converted into shares. Dilutive securities include options, warrants, convertible debt, and anything else that can be converted into shares.
Beside above, what is the difference between diluted and basic shares outstanding? Basic shares represent the number of common shares that are outstanding today (or as of the reporting date). Fully diluted shares equals basic shares plus the potentially dilutive effect from any outstanding stock options, warrants, convertible preferred stock or convertible debt.
In this way, how do you calculate diluted shares outstanding?
The formula used to calculate a company’s diluted EPS is a company’s net income minus preferred dividends divided by the weighted average number of shares outstanding plus the impact of convertible preferred shares and the impact of options, warrants, and other dilutive securities.
Are options included in shares outstanding?
Typically, outstanding shares do not include any part of the option pool. Options whether issued or not are a right to buy shares. After an option is exercised, shares are issue and counted as issued and outstanding shares.