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

Popular Accounting Terms

naked call
underwriting
controlling interest
Options on physicals
seigniorage
hardening
trainee
bond yield
building society
trust