Fully Diluted Shares
An investor should consider carefully the fully diluted share amount because it can cause a company's share price to plummet significantly if a large number of option holders or convertible bond holders decide to claim their stock.
For example, let's say that XYZ Corp. currently has 1 million shares outstanding, 1 million options outstanding (assuming each option gives the right to buy one share) and its share price is $5. If everyone decides to exercise their options, there would be 2 million shares outstanding and the share price would likely drop to $2.50.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
fully diluted shares — /ˌfυli daɪˌlu:tɪd ʃeəz/ plural noun total number of shares which includes convertible shares, stock options, etc … Dictionary of banking and finance
fully diluted earnings per share — /ˌfυli daɪˌlu:tɪd ˌɜ:nɪŋz pə ʃeə/, fully diluted EPS /ˌfυli ˌdaɪlu:tɪd ˌi: pi: es/ plural noun earnings per share calculated over the whole number of shares assuming that convertible shares have been converted to ordinary shares … Dictionary of banking and finance
Fully Diluted EPS — An EPS (earnings per share) figure that is calculated by dividing earnings by a larger amount of shares than the number currently outstanding. It assumes the eventual full issue of all shares connected to convertibles, options, warrants and… … Financial and business terms
fully diluted earnings per share — The earnings per share (eps) for a company that takes into account not only the number of shares in issue but also those that may be issued as a result of such factors as convertible loans and options or warranties. Financial Reporting Standard… … Accounting dictionary
fully diluted earnings per share — The earnings per share (eps) for a company that takes into account not only the number of shares in issue but also those that may be issued as a result of such factors as convertible loans and options or warranties. Financial Reporting Standard… … Big dictionary of business and management
fully diluted earnings per share — A notional calculation carried out by companies to warn shareholders of potential deterioration of earnings per share in the future as a result of new shares being issued by the company on the exercise of convertibles, warrants or options already … Financial and business terms
fully diluted earnings per (common) share — Fin earnings on a share that take into account commitments to issue more shares, for example, as a result of convertibles, share options, or warrants … The ultimate business dictionary
Fully diluted earnings per shares — Earnings per share expressed as if all outstanding convertible securities and warrants have been exercised. The New York Times Financial Glossary … Financial and business terms
fully diluted earnings per shares — earnings per share expressed as if all outstanding convertible securities ( convertible security) and warrants have been exercised. Bloomberg Financial Dictionary … Financial and business terms
Diluted Earnings Per Share — (diluted EPS) is a company s earnings per share (EPS) calculated using fully diluted shares outstanding (i.e. including the impact of stock option grants and convertible bonds). Diluted EPS indicates a worst case scenario, one in which everyone… … Wikipedia