Undiluted Ownership
Content
Definition
Undiluted Ownership is ownership of a company`s shares without considering the potential effect of stock option conversions or the issuance of new shares.
Usage and Context
Undiluted ownership refers to shares held without counting future stock option conversions or new shares.
Frequently asked questions
- What is undiluted ownership? Undiluted ownership is the share percentage held without factoring in possible dilution from options or new shares.
- What does fully diluted ownership mean? Fully diluted ownership refers to the total percentage of a company an individual or entity would own if all convertible securities were exercised and converted into shares.
- Does fully diluted share include unvested options? Yes, fully diluted shares include unvested options, assuming all options, warrants, and convertible securities are exercised or converted.
Benefits
Undiluted ownership maintains control for shareholders, ensuring value retention.
Conclusion
Undiluted ownership ensures control for shareholders, preserving their investment value.
