“Fully diluted”(FD) shares are the total number of common shares of a company currently issued or outstanding plus all shares that could be claimed through the conversion of issued convertible preferred stock, Convertible Instrument's and the exercise of outstanding options and warrants.
The calculation of “fully diluted” shares helps an individual stock owner determine their “fully diluted” ownership percentage, which is the number of common shares owned by that owner divided by the total fully diluted shares, assuming all outstanding potential dilution events. This calculation captures the total pool of potential common shares.
A “Cap Table” (short for “Capitalization Table”) is a document, typically in the form of a spreadsheet or table, that offers a snapshot of an organization's equity capitalization and total market value.
Cap tables aim to capture shareholder equity and other sorts of information including common equity shares, preferred equity shares, warrants, and convertible equity, et al.. With this, cap tables become a vital decision-making tool for assessing equity ownership, market capitalization, and potential market value.