Shareholder Percentage Ownership
The shareholder ownership percentage on Gust Equity Management is displayed as fully diluted, which means a few things:
- it represents the percentage of the company you would own today if you (and everyone else) fully vested and converted all outstanding stock, options, and warrants into common stock
- mathematically, it represents your holdings as-converted divided by the fully diluted total outstanding shares in the company
- this percentage does not reflect convertible instruments or debt, which may later convert or have specific preferences at a liquidity event
- this percentage also does not reflect the liquidation preferences of preferred stock, management carve-outs, or any other preferences that would result in reduced proceeds at a liquidity event
- this percentage does reflect the authorized, but unissued option pool so new option holders will not dilute your percentage if they're receiving options allocated from the pool
This is the most common way to view ownership, as it provides a balanced view of the current equity distribution within the company. With the above points in mind, remember that your percentage is subject to dilution and will almost always decrease over time as the company raises capital and issues stock, options and warrants.
Note: not every company elects to share this percentage with shareholders, so many accounts will list only the number of shares, options or warrants and not the percentage.