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.
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.
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.