Basic earnings per share

• Basic EPS. Earnings per share (EPS) calculated without regard to any contingent securities.

• There are two kinds of Earning per Share (EPS): basic and diluted. Basic shares are fewer in number than diluted. For Basic EPS, net income is divided by the number of common shares outstanding. This usually produces a larger EPS number than when using a diluted number of shares. Be consistent in the kind of EPS you use. See also: Diluted Earnings Per Share.

 Embedded terms in definition
 Common shares
Contingent securities
Diluted earnings per share
Earnings per share
Net income
 Related Terms

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