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Hoots : If employees exercise options that they are given by the company, will that increase the number of outstanding shares? Question is simple If employees exercise options that they are given by the company, will that increase - freshhoot.com

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If employees exercise options that they are given by the company, will that increase the number of outstanding shares?
Question is simple If employees exercise options that they are given by the company, will that increase the number of outstanding shares? If yes why and if no why.

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Yes, when stock options granted to employees are exercised, then new stock is bought from the company at the strike price, so new shares are created and existing shares are diluted.

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