Shares are exercised when an option holder chooses to convert their stock options into actual shares of the underlying stock. This typically involves notifying the issuing company or brokerage firm of the intention to exercise the option, often accompanied by payment of the exercise price per share. Once exercised, the shares are either transferred to the holder’s brokerage account or issued directly, depending on the type of option and the terms of the agreement. The process is usually completed electronically or through a formal exercise notice and payment method.
Exercised.
"Underlying shares outstanding" refers to the total number of shares of stock that are currently issued and held by shareholders, including those held by institutional investors and company insiders. This metric is important for assessing a company's market capitalization and overall valuation. It also serves as a basis for calculating the potential dilution of shares if options or convertible securities are exercised. Understanding the number of underlying shares outstanding helps investors gauge the company's equity structure and potential investment risks.
Jurisdiction is exercised within city limits of where the crime was committed.
An option can be exercised at any time before its expiration date.
Equity, or partial ownership of a corporation, is divided into shares that may (optionally) be of many different classes. There are typically "common" shares and "preferred" shares of classes lettered A, B, C, etc. The market determines the value of the common shares and the corporate board of directors determines the value of the preferred shares. For example, a preferred Class A share may be convertible into a large number of common shares (or options to purchase common shares at some low price), but only at some specific time or event in the future, with some other "bonus" the board thought necessary to entice investors for the first round of equity financing. Class B may be fewer shares, or some other requirements to become vested (can't be exercised for a year, must be an executive employee, or whatever), and so on for each round. Detailed answer here: http://financenmoney.in/types-of-share/
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Yes, fully diluted shares typically include unvested options, as well as other potential sources of dilution such as convertible securities and warrants. This metric provides a comprehensive view of a company's total equity structure by accounting for all shares that could be outstanding if all options and convertible instruments were exercised. However, the treatment of unvested options can vary based on the context, so it's important to clarify how they are accounted for in specific analyses.
Yes, the word exercised is a verb, the past participle of the verb to exercise. The past participle of a verb is also an adjective. Example uses: Verb: We exercised everyday before going to school. Verb: They exercised the 'no questions asked return guarantee' by returning it. Adjective: The exercised puppies are so frisky when they're returned to their cages.
A basic EPS is calculated using the weighted average number of shares in issue during the period. A diluted EPS is calculated using all shares in issue and those due to be issued (e.g. under share option schemes). A fully diluted EPS is calculated using all shares issued, due to be issued and which could be issued if all existing warrants are exercised, convertible bonds are converted to equity etc. This tends to be less commonly used because of the complexity and uncertainties involved.
It first needs to be rested and then exercised.
There are two kinds of options: American-style options and European-style options. American options can be exercised at any time up to the maturity of the option, whereas European options are exercised toward the end of the contract.