Fully diluted market capitalization and basic market capitalization are two different ways of measuring the value of a company, taking into account different factors related to the company's shares and potential future dilution.

Basic market capitalization is calculated by multiplying the current stock price by the total number of outstanding shares. It represents the value of the company based on the existing shares available in the market.

On the other hand, fully diluted market capitalization considers the potential impact of all additional shares that could be issued in the future, including stock options, convertible securities, and other instruments that can be converted into common shares. It assumes that all these potential shares are fully exercised or converted.

The difference between fully diluted market capitalization and basic market capitalization arises from the consideration of these potential future shares. Fully diluted market capitalization provides a more comprehensive and conservative valuation, as it accounts for the potential dilution of existing shareholders if all convertible securities are exercised.

Investors and analysts may consider both measures depending on their specific analysis and investment objectives. Fully diluted market capitalization is particularly relevant when evaluating the impact of potential dilution on existing shareholders.