Capitalization Tables or Cap Table are the representation of ownership of a company beginning at the time of incorporation. If you are going to raise outside capital, you will create more shares, generally at a later date, and those are the additional shares that will be sold to a shareholder. When you take outside investment you are not selling lot or group of your own shares, but adding new shares. This is called dilution.
How many shares is the right number at time of incorporation?