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Diluted earnings per share

• Since 1997 U.S. companies have been required to report diluted EPS as well as basic. Diluted EPS account for potential additional shares being distributed from Options, Warrants, or Rights that may be converted or exercised. If there is a choice, choose diluted EPS. See also: Basic Earnings Per Share.

• Diluted EPS. Earnings per share (EPS) calculated under the assumption that all contingent securities that would have dilutive affects are converted into common shares.

 
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