Fully Diluted - This refers to the number of shares of a company's common stock that would be considered issued and outstanding on a particular date if all convertible securities, whether debt or equity securities, were issued or exercised on that date as well, even if they weren't.  For instance, it not only includes the company's common stock that is issued and outstanding on the date in question, but it would  take into account the number of shares of common stock that would be issued if all the Warrants  and Options  the company has issued to consultants and employees were exercised all at once.

Example:  Let's say that Mobilepro Corp. has 200,000,000 million shares of common stock issued and outstanding on March 1, 2008.  It also has 10,000,000 Warrants issued to consultants for services they have rendered and 20,000,000 Options issued to employees.  Based on these facts , Mobilepro Corp. would be said to have 230,000,000 shares of common stock issued and outstanding on a fully diluted basis.

Investors typically like to track the number of shares of common stock a company would have issued and outstanding on a fully diluted basis because it is an indication of how much future dilution a company may have in its common stock. Not all common stock underlying Options and Warrants  may be exercised, however, since some of them my expire before ever being exercised.

This term should not be confused with  "Float".