A
Diluted Earnings Per Share (Diluted EPS)
Diluted Earnings Per Share
Image 1 This is the earnings per share if all convertible securities were exercised.
Image 2 In other words, diluted earnings take into account if all warrants, stock options, and convertible bonds were traded in for stock. This increasing the shares outstanding. Diluted EPS is a much more accurate reflection of a company's earnings.


Convertible Bond

Earnings Per Share

Option

Warrant