diluted earnings per share
A measurement used to evaluate the quality of a company's earnings per share. Diluted earnings are calculated by adding convertible securities to outstanding shares and dividing that number into the company's net earnings. It is intended to convey a worst case scenario if every investor and employee with warrants, convertible debentures, and stock options exercised the option to convert them to outstanding shares. Compare to Basic Earnings Per Share.
Browse by Subjects
dilution
basic earnings per share (basic EPS)
income statement
anti-dilution provision
primary earnings per share
See All Related Terms »

depositor
thinly traded stock
credit freeze
tied financial adviser
voting stock