kmf229

Great explanation! Once could not have said that in fewer words.



beatthecfa Wrote:
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> Basic EPS has 'weighted average number of common
> shares outstanding' as its denominator
>
> Diluted EPS has 'weighted average number of common
> shares outstanding' plus 'common shares issued
> upon assumed conversion/exercise of any
> potentially dilutive securities' as its
> denominator.
>
> Also, if a potentially dilutive security is issued
> during the year, the 'number of common shares
> issued upon their assumed conversion' is also
> weighed for the fraction of the year that these
> securities were outstanding.