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Diluted Shares
Last Wednesday, MacNN summarised the results of Apple’s first quarter of 2004. So, I thought: what is a diluted share? I just found a definition:
Earnings per share, including common stock, preferred stock, unexercised stock options, unexercised warrants, and some convertible debt. In companies with a large amount of convertibles, warrants and stock options, diluted earnings per share are usually a more accurate measure of the company’s real earning power than earnings per share.
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