Investor Glossary-diluted shareInvestor Glossary-diluted shareInvestor Glossary-diluted shareInvestor Glossary-diluted shareInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Diluted Share

The HTML to link to this page
 

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...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: Key Rate Duration, margin rate, stock split, irrevocable trust, required rate of return, 1031 exchange, debt service coverage, ex-dividend, ex-dividend date, covered put, 401a, average price per share, Zero Cost Collar, deferred tax, liquidity ratio, phantom income, reverse mortgage, current ratio, 1035 exchange, inflation, class C shares, balance sheet, per diem, diluted share, wholly-owned subsidiary, annual return, VIX, option premium, limit order, EBITDA, deferred revenue, stock market close, APR, in escrow, FICO score, command economy, implied volatility, open position, risk management, dividends payable, real GDP, 144a, FTSE, minority interest, LIBOR, cancelled check, labor relations, retained earnings, quality assurance


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use