Dilutive securities are financial instruments—usually stock options, warrants, convertible bonds—which increase the number of common shares if exercised; this then reduces, or "dilutes", the basic EPS (earnings per share). Thus, only where the diluted EPS is less than the basic EPS is the transaction classified as dilutive.
Dilutive securities are financial instruments—usually stock options, warrants, convertible bonds—which increase the number of common shares if exercised; this then reduces, or "dilutes", the basic EPS (earnings per share). Thus, only where the diluted EPS is less than the basic EPS is the transaction classified as dilutive.
Source: Wikipedia "Dilutive security" · CC BY-SA 4.0
Share this article: X · Bluesky