In addition to reporting earnings per share, corporations must report' Diluted earnings per share' to account for the possible, though unlikely, occurrence that all outstanding warrants and stock options are exercised, and all convertible bonds and preferred shares are exchanged for common stock. Diluted earnings actually report the smallest potential earnings per common share that a company could have based on its current earnings. In theory, at least, knowing the diluted earnings could influence how much you would be willing to pay for the stock.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). diluted earnings per share. Retrieved September 23, 2026, from http://smartdefine.org/diluted_earnings_per_share/definitions/1151997 |
| Chicago | Barry Goldsmith. 2010. "diluted earnings per share" http://smartdefine.org/diluted_earnings_per_share/definitions/1151997 (accessed September 23, 2026). |
| Harvard | Barry Goldsmith 2010, diluted earnings per share, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/diluted_earnings_per_share/definitions/1151997>. |
| MLA | Barry Goldsmith. "diluted earnings per share" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/diluted_earnings_per_share/definitions/1151997> |