   
|
|
|
|
Diluted Share
|
Diluted share is a term used in reporting earnings per share, as in "earnings per diluted share." Under Statement of Financial Accounting Standards 128, a company that has a complex capital structure (ie, it has securities that have the potential of becoming common shares) must report earnings on both a "basic" (non-dilutive) and diluted share basis. Computing earnings on a dilutive share basis involves consideration of three types of securities: options and warrants, contingent shares, and convertible securities. These securities are assumed to be exercised, issued, or converted, which increases the weighted average of outstanding shares upon which diluted share earnings are computed. Since earnings on a diluted share basis assumes more outstanding shares, diluted share earnings are smaller than basic earnings per share. Thus earnings on a diluted share basis is the more conservative presentation.
Rate this diluted share definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: LIBOR, inflation, 401a, real GDP, EBITDA, command economy, 144a, deferred tax, per diem, liquidity ratio, margin rate, deferred revenue, required rate of return, net book value, cancelled check, minority interest, wholly-owned subsidiary, average price per share, forward PE, retained earnings, diluted share, trailing PE, current ratio, FICO score, debt service coverage, dividends payable, phantom income, 1031 exchange, Zero Cost Collar, COO, labor relations, arm's length transaction, commodity, 1035 exchange, option premium, net income, Key Rate Duration, reverse mortgage, covered put, class C shares, APR, balance sheet, assets under management, equities, VIX, FTSE, quant, commercial paper, stock market close
|
|
|
|
