Overhang

Refers to stock options. It is calculated as to stock options granted plus remaining options yet to be granted divided by the total number of shares issued and outstanding. A high percentage implies excessive dilution.

Similar financial terms

Market overhang
The theory that in certain situations, institutions wish to sell their shares but postpone the share sales because large orders under current market conditions would drive down the share price and that the consequent threat of securities sales will tend to retard the rate of share price appreciation. Support for this theory is largely anecdotal.

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Security

Piece of paper that proves ownership of stocks, bonds and other investments.


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