Diluted Earnings per Share

1. Diluted earnings per share is the (income available to the common stock shareholder + interest on dilutive securities) divided by the weighted average number of common shares outstanding assuming all dilutive securities are converted to common stock. The objective of diluted earnings per share is to measure the performance of an entity over the reporting period while giving effect to all potentially dilutive common stock shares outstanding during the period. See also basic earnings per share. Earnings (net income) per share where "share" includes common stock, preferred stock, unexercised stock options, unexercised warrants, and some convertible debt.